Regulating the activities of pension funds and protecting them from misuse is a complex issue. In developed countries, one of the main assets for most people over 45 is their share in a pension fund. In the 19th century, the pressing financial need for the average person was life insurance to protect the family in case of the breadwinner's early death. Today, life expectancy has nearly doubled compared to the 19th century, making the primary need for ordinary people the assurance of a dignified old age. In the 19th century, life insurance was essentially death insurance, while today's pension funds are old-age insurance. In a society where people live much longer than their working lives, such an institution is necessary. Regulating the activities of pension funds and protecting them from misuse will remain a serious problem for politicians and lawmakers in the coming years. It is likely that this issue will only be resolved after we face several high-profile scandals.

TIP OF THE DAY: Identify the weaknesses in the management of your pension fund.