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Investment returns of defined-contribution pensions are woefully low

The investment returns of people with defined-contribution pensions are woefully low -- much lower than the returns seen by the managers of defined-benefit schemes. And the difference, to a first approximation, is rents being extracted by the financial-services industry. That's the industry which does all of the educating: so it's unrealistic to assume that it's going to educate people and thereby reduce its own income.

-- Abnormal Tadas Viskanta and FelSalm.


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