Originally Posted by
morningcoffee
Seriously? Do some homework. Wouldn't matter if you are in Qantas or BA, where you also work for a publicly listed company. There is no big warehouse full of your money and everybody else's money that they've contributed to a provident fund. Not here, not anywhere. My point is simply to spread your risk.
Depends on where you are and how it is set up. If the fund relies on benefits based on the solvency of the company (including national pension schemes and Social Security, etc.) this is correct. There are some national guarantee schemes but these are usually a fraction of what the benefits might have been.
In a 401K or 401-K like scheme not so much in that it is your money to start with and national laws preclude external meddling. So these types of funds cannot be touched except by the beneficiary. Now I guess you could argue that the individually chosen investments—which often have wide choices— are only as safe as the market at large but then again so is the cash and banking systems of most nations. And if these all come down at once it’s probanly time to head for the hills to fight the zombies anyway.
It is wise never ever to put all your eggs in one basket though.