Bitcoin as a government approved retirement plan

[Z-tight]

In the situation of the formation of state and corporate pension plans, decentralization of coin storage will be significantly worsened.

Yeah, it is easy for pension funds to be deposited into a bank account and the holder can claim their money after their years of active service. However, it is different for BTC that every user is expected to be their own bank and store their BTC in a self custodial wallet, and the only way this can work is if it is deposited into centralized or custodial wallet, which is not safe because the service can collapse even before you are done with active service.

[GeorgeJohn]

As the adoption of Bitcoin increases, I think it would be something worth implementing for the government to include Bitcoin as an option for workers to choose for their retirement savings.

Bitcoin is not yet a legal currency worldwide, so that's will be the reason why a government workers will not be pay with bitcoin, but assuming bitcoin has been passed into law in some countries, for example U.S and U.K and so on...it would have been easier for them workers to receive payment with bitcoin..At look of things before any country government will implement such for bitcoin to be use as a legal tender I think it will be difficult for them

I will agree with you that adoption of Bitcoin is increasing unlike before, but its individuals that adopts bitcoin, so the chance of bitcoin of becoming a legal tender and be implemented in law as source of payment, can come to accomplish when big companies such as Amazon, Apple, Samsung, etc officially embrace Bitcoin as payment method, so their influence can make her country government to implement bitcoin as a legal tender, and workers can have the right to receive payment with bitcoin.

[tbct_mt2]

However, it is different for BTC that every user is expected to be their own bank and store their BTC in a self custodial wallet, and the only way this can work is if it is deposited into centralized or custodial wallet, which is not safe because the service can collapse even before you are done with active service.

It's terrible practice and fund management and with Terra, FTX collapses 3 years ago, I remember a pension fund bankrupted consequently too.
Ontario Pension says any loss from FTX investment to have limited impact.

Maybe more funds got troubles and this warning is never old.
Reminder: do not keep your money in online accounts

Sacrificing freedom, full control, and safety to chase annual yield from pension fund offer is terrible. If you have bitcoin, hold it by yourself, and if you need money, sell it by yourself.

[kryptqnick]

As the adoption of Bitcoin increases, I think it would be something worth implementing for the government to include Bitcoin as an option for workers to choose for their retirement savings.

Let's say as a worker, instead of the normal 401(k)s, 403(b)s for the US, State pension for the UK and CPS for Nigeria, the employee can choose Bitcoin for retirement savings. The government creates a wallet for such employee and adds the address to the escrow service used in paying those that choose Bitcoin for retirement benefits and sends the equivalent of the Fiat contributions monthly. The employee has the wallet address and can monitor inflows into the wallet on a monthly basis, but is unable to access the wallet since the corresponding seed phrases is retained by the government until his retirement period when full transfer of ownership would be initiated.

I feel Bitcoin enthusiasts would really prefer this option since it would be another opportunity for the government to be DCAing on your behalf and you're indirectly holding for a long period of time (20 - 35 years) or any duration of your active service as the case may be.

The profitability potential of such investment would be mind-blowing at the retirement of such employee, he can be able to live off his the investment of his active years of service. The value of his Bitcoin would be much higher compared with the what he should've had if he should receive fiat benefits.

This is just me thinking out of the box on other possible ways of accumulating Bitcoin, what's your thoughts on this?

It's an interesting idea, but even though I believe in Bitcoin, I wouldn't subscribe to something so long-term and not under my control for 100% BTC savings. I think that making some savings in fiat is still a good idea because Bitcoin is volatile. An alternative and, in my opinion, more realistic solution would be for pension funds that work via investing the money into low-risk assets (it doesn't work this way everywhere, it depends on a country) to invest some of the funds into Bitcoin, in a way that they invest into other assets. Although giving a choice of a BTC retirement savings fund does sound very nice as well, as long as a person can choose to invest a part of the funds rather than all the funds that go toward retirement this way.

[bangjoe]

If Bitcoin has been legally made a legal currency this will be much easier to regulate by the government but if in conclusion bitcoin is a commodity or asset then it is very difficult to make it as pension money managed by the company or government for its employees, because seen from many cases in general the pension fund is in the form of money not a certain asset or commodity then according to the rules and customs it must be in the form of money, if bitcoin has been legally made a currency then this will be much easier to regulate, but if not, it will be very difficult, the solution is to save bitcoin independently for the preparation of your own pension fund.

[Patikno]

I think it is very good to implement Bitcoin as a retirement savings for workers, but it would be wiser if it was an option, because I think there are still some people who will not choose it because of several factors, especially if they are old enough. However, I think the government needs to consider a lot to decide it, because we know that every policy needs further discussion, for example they need to introduce Bitcoin comprehensively to the public, especially if we talk about retirement salaries then most of them (age factor) are people who don't really understand Bitcoin I think, CMIIW.

[Rockstarguy]

This is just me thinking out of the box on other possible ways of accumulating Bitcoin, what's your thoughts on this?

It is a good idea but I don't think the government would ever hodl bitcoin as investment for its employees. The government will only pay you off for the number of years of your service. Have always known the government to make investment for itself and not for citizens,  the government would invest to generate money and try to provide  for citizens only what they think it is their responsibility for them. The government pays you when you work for them, and expect to get your money through tax and other expenses back.  I think if the government hodl bitcoin for every employee to make good profit in the future they may think fiat currency would lose value.

For me I think the government would rather take this energy to hodl bitcoin for itself for the future,  and this can also serve as a reserve for the government. There some saving in fiat which they claim if people save money for sometimes they will earn profit and at the end of it no reasonable profit,  thats to tell the government can't give you profit or help you to invest in bitcoin to make profit in the future.

[hd49728]

It's an interesting idea, but even though I believe in Bitcoin, I wouldn't subscribe to something so long-term and not under my control for 100% BTC savings. I think that making some savings in fiat is still a good idea because Bitcoin is volatile. An alternative and, in my opinion, more realistic solution would be for pension funds that work via investing the money into low-risk assets (it doesn't work this way everywhere, it depends on a country) to invest some of the funds into Bitcoin, in a way that they invest into other assets. Although giving a choice of a BTC retirement savings fund does sound very nice as well, as long as a person can choose to invest a part of the funds rather than all the funds that go toward retirement this way.

It's not like if you store your bitcoin on a centralized website for a short term, there is no risk of losing all your bitcoin.

Incident with that website can happen anytime, and if you are very unlucky enough, after you deposit your bitcoin to that platform, incident will occur immediately and you consequently will lose your bitcoin nearly instantly too.

Thinking about Bitcoin retirement fund as a long term fund storage for the elderly, while they don't know what's happening with the fund management, they are trusting a third party custodian and living with a nightmare that can appear anytime.

Joining fund means you will have to pay extra fee while with your non custodial wallet, you don't have to pay fee to anyone for your Bitcoin storage.

[Josefjix]

The profitability potential of such investment would be mind-blowing at the retirement of such employee, he can be able to live off his the investment of his active years of service. The value of his Bitcoin would be much higher compared with the what he should've had if he should receive fiat benefits.

You going to view from the other way round and not just what you want out of it, firstly Bitcoin is a decentralized system which is absolutely against the way of the government also it wouldn't be easy for the government to partake in anything they restrict them from taking control.

Most of the account of a deceased pensioners are used by bank passing a policy that'll favour the banking institutions whenever a retiree died and leave his account inactive. These won't occur in the case of Bitcoin as they government will loose in this case, I don't think it's possible implementing this though.

[Questat]

That is really creative idea. Letting government employees choose Bitcoin for their retirement savings could make big difference. With doing this  government would help employees invest in Bitcoin over time which could lead to big gains in long run. It is also good idea that government would keep investment safe until employee retires so they can not spend money too soon. This kind of investment could give employees a lot of money for retirement. Your idea shows that it is essential to think of new ways to invest in Bitcoin and explore different strategies. It will be interesting to see if governments decide to try this idea in future.

If this kind of approach will be adopted by the government, people will never experience financial crisis in the future, especially in their retirement age. However, this could be quite impossible to happen for now if the government remains skeptical about bitcoin, but we can’t tell what will be the scenario in the future. I actually like this idea, looking forward to implement this soon if the government will already side with bitcoin.

[suzanne5223]

As the adoption of Bitcoin increases, I think it would be something worth implementing for the government to include Bitcoin as an option for workers to choose for their retirement savings.

This is a concept that's already been implemented in Switzerland, and some parts of Australia years ago if can remember correctly. However, it was an individual decision since it is something that has to do with investment that comes with risk.

Never heard of it, but good for them.
In the end, they would be in a much better position than the rest if they get their savings in BTC. 

The provision of people saving in BTC won't be encouraged unless we see a lot of institutional banks that support the use and saving of funds in BTC. However, this is not a good idea given the model of institutional banking operations which is against the liberation BTC presented. At least this will give people the ability to see BTC as a form of payment.

People from the countries where BTC is allowed as a retirement plan make a personal decision about it. It is not that the decision was made on their behalf.

[YUriy1991]

The provision of people saving in BTC won't be encouraged unless we see a lot of institutional banks that support the use and saving of funds in BTC. However, this is not a good idea given the model of institutional banking operations which is against the liberation BTC presented. At least this will give people the ability to see BTC as a form of payment.

Banks also do not want to be left behind in the future, initially they could not because the government prohibited it, but if the authorities and issued a regulation allowing it, I think the bank will buy it by itself. For full control, I think it is impossible except for their own, namely the Central Bank Digital Currency (CBDC) because they have a private blockchain while in crypto currency using a public blockchain.

[Fara Chan]

Banks also do not want to be left behind in the future, initially they could not because the government prohibited it, but if the authorities and issued a regulation allowing it, I think the bank will buy it by itself. For full control, I think it is impossible except for their own, namely the Central Bank Digital Currency (CBDC) because they have a private blockchain while in crypto currency using a public blockchain.

Although banks are likely to develop CBDC, I think its users will not be much more than users of other cryptocurrencies and will not be able to surpass Bitcoin users in the future. Because most people who have been customers of a particular bank will also do research on it like they have done research on Bitcoin so far and when CBDC already exists, of course cryptocurrencies can also be used freely in any transaction. So CBDC will not immediately win in this regard because it still has to fight more crypto coins that are already quite popular at this time including Bitcoin.

[Hazink]

Let's keep the government. There are some private companies that are part of your agreement. My salary for the month is being removed and saved for you as part of your pension, which will be paid to you at the end of your service with them. They save that money in fiat without minding about currency devaluation, which is where the OP's suggestion comes in if it's possible for workers to decide how their pension can be paid and could be saved.

It is impossible for workers to choose how their pension should be paid. It has to be what the company wants that will be used as a means pf payment. Even if any company will allow Bitcoin as a means of saving for pension, there should be terms and conditions. Because imagine a case where Bitcoin tend to drop in price over the years on their due date to receive their pension most workers would complain that they receive low. The deal should be that they will receive the equivalent of what is left in their wallet not exact amount to their local currency. That means whatever they see in their wallet over the years is what they will get. If it is higher good for them and if it is lower that is the essence of the savings too.

I never said it's possible and easy for the government to pay pensions in bitcoin, but for private companies this is a proposal that everything starts one day; if the company in question is also interested in bitcoin, this could be easy to agree upon based on the majority of the employees raising the same proposal, and if it's to be granted, for sure there is no time that they won't have some sort of agreement that will protect both the company and its workers in terms of price rotation; everything will be by the book, and it will be left to the worker to decide if that pattern is agreeable to him or not.

[hd49728]

Banks also do not want to be left behind in the future, initially they could not because the government prohibited it, but if the authorities and issued a regulation allowing it, I think the bank will buy it by itself. For full control, I think it is impossible except for their own, namely the Central Bank Digital Currency (CBDC) because they have a private blockchain while in crypto currency using a public blockchain.

Central banks lead a trend first under command of governments and commercial banks follow the trend as well as new regulations. They don't bring good things to citizens because a big fact is all fiat currencies are inflationary and their purchasing powers decrease dramatically with time. A classic example is the US dollar but it's not a worst fiat currency.

Purchasing power of the US. dollar over time.

You can follow CBDC progresses there
https://cbdctracker.org/
https://www.atlanticcouncil.org/cbdctracker/
https://cbdctalks.com/

[suzanne5223]

The provision of people saving in BTC won't be encouraged unless we see a lot of institutional banks that support the use and saving of funds in BTC. However, this is not a good idea given the model of institutional banking operations which is against the liberation BTC presented. At least this will give people the ability to see BTC as a form of payment.

Banks also do not want to be left behind in the future, initially they could not because the government prohibited it, but if the authorities and issued a regulation allowing it, I think the bank will buy it by itself. For full control, I think it is impossible except for their own, namely the Central Bank Digital Currency (CBDC) because they have a private blockchain while in crypto currency using a public blockchain.

Yes, the banks don't want to be left behind, but they are not really prohibited. Maybe the government prohibited it in your geographical region because the major reason the banks don't deal with Bitcoin is the volatility in nature of it. As we speak, the institutional banks are working on adding Bitcoin to their service, and most of them already have a stake in Grayscale or BlackRock Bitcoin ETF.

I believe we will see the Feds providing the legal compliance for the banks to operate with Bitcoin before the end of this year.

[NotATether]

That may be a very very bad idea for reasons I will outline below.

Not to sound like a bear or anything, but there a lot of scammers around the entire world doing their best to steal as many people's money as possible. And old people are a favorite target of theirs because they usually do not know much about blockchain or technology to call out their bullshit. Now imagine if you paid their pension in crypto.... see how things backfire quickly?

Unless the FBI, Europe and Interpol plan on creating a transnational police force just for catching scammers like they do with ransomware owners and identity thieves, then nobody can really so anything to stop it.

[GigaBit]

Banks also do not want to be left behind in the future, initially they could not because the government prohibited it, but if the authorities and issued a regulation allowing it, I think the bank will buy it by itself. For full control, I think it is impossible except for their own, namely the Central Bank Digital Currency (CBDC) because they have a private blockchain while in crypto currency using a public blockchain.

Although banks are likely to develop CBDC, I think its users will not be much more than users of other cryptocurrencies and will not be able to surpass Bitcoin users in the future. Because most people who have been customers of a particular bank will also do research on it like they have done research on Bitcoin so far and when CBDC already exists, of course cryptocurrencies can also be used freely in any transaction. So CBDC will not immediately win in this regard because it still has to fight more crypto coins that are already quite popular at this time including Bitcoin.

Investors give the highest priority to their profits. Although CBDC exists in many countries, the interest of the common people in it is low. Because they know very well that the common people have no interest in currencies managed by central banks. The common people will definitely find more attraction in crypto. The biggest attraction of people towards Bitcoin investment is that it is decentralized and will not be governed by any central bank. That is why they are always enthusiastic about holding Bitcoin. But those who are ignorant may be attracted to CBDC, but in the long term they will refuse it.

[RagnarTheThunderer]

This could be a glimpse into the future of retirement planning. As bitcoin adoption increases, governments may have no choice  but to incorporate it into official pension schemes. The idea of using btc as a long term store of value for retirement is compelling, especially if it outperforms inflation prone fiat currencies. If implemented properly, this could reshape financial security for future generations. I'd be curious to see how governments and financial institutions react to this concept in the coming years.

[SigCrypto]

this could be a revolutionary shift in how retirement savings work but there are serious regulatory challenges. Governments would need clear legal frameworks to ensure bitcoin pensions are secure, tax efficient and protected against fraud. Some countries already allow bitcoin in self directed retirement accounts which might be a safer model. If governments are to implement this, they should consider working with crypto experts to design a system that's both innovative and reliable