Question

Some feel that public pension money should only be invested in socially advantageous programs that support low-income housing, education, or other services that benefit a community. Others feel the pension money should be invested in the highest possible yielding investments. What is your opinion? Support your answer.

Answer 1

In my opinion, the public pension money should be invested in the highest possible yielding investments after considering the level of risk involved. Investing pensioners money into social schemes or other services would mean uncertainty on the part of return that will come and pensioners can not afford to have uncertainty at this age of their life. Also, money finds its way ultimately to highest yielding avenue, if pensioners will feel that their money is not generating enough return, they will start to withdraw the same and invest on the basis of their prudence. Thus, it is better that social schemes and services should be left at government's money instead taking specifically pensioners money to fund the same.