Current news on the state of pension funds and schemes today can be very disturbing to workers. There are warnings that many retirees are approaching their retirement without sufficient funds to maintain their standards of living.
The management costs of pension funds have risen by close to 30% in a decade as managers pursue alternative investments assets such as hedge funds, real estate and private equity. In many cases, most of these schemes are poorly managed, exposing pensioners to the risk of poverty in their old age.
Even more troubling is data by the International Labor Office (ILO) that shows that close to 90% of the world’s workers do not have pension schemes. Pension funds require heavy investment and paperwork and therefore leave foreign workers, minorities and workers in underperforming economies without retirement income.
If the trend remains unchallenged, more workers will step into their old age without much of a nest egg. All in all, the challenges that pension schemes are facing are a direct consequence of the state of the traditional financial system.
The centralized financial system is inefficient, lacks the transparency of operations and is therefore prone to moral abuse. Moreover, it is a system ridden with intermediaries that take away investment returns for their services, exposing savers and investors to dwindling returns.
Blockchain technology to the rescue
The emerging decentralized finance (DeFi) sector seeks to address these shortcomings. DeFi is disrupting the legacy financial system, creating systems that operate without intermediaries. For example, ROSA is a decentralized blockchain project creating a global pension ecosystem.
Running on smart contracts on the Ethereum and Binance Smart Chain, ROSA’s open-source protocols create a transparent pension ecosystem that gives investors access to a wide range of crypto-based pensions savings plans.
ROSA Finance eliminates the lack of transparency in the pension management process, giving users a firm grasp of how their funds are invested. The decentralized protocols also display the performance of pension products under its smart contract protocols. In a world where few pension funds act in good faith when it comes to payments and management, ROSA is a breath of fresh air.
ROSA’s transparent pensions investment protocols
Leveraging the power of distributed ledgers and peer to peer transactions, ROSA releases funds from the clutches of asset managers and opens investment decision making to community voting. Moreover, ROSA’s blockchain transparency ensures that all its protocols act in a savers or investors best interest.
ROSA awards yields and its native token to savers that deposit their crypto assets to its liquidity pools to earn a tax-free passive income. The decentralized pension plan’s protocols will lend these assets to institutional investors and charge them interest rates.
Because they are few thumbs in the pie, the stakeholders will earn more from their pension plans. ROSA does not overburden savers with account managers, fund managers and plan representatives, trustees or boards.
The control of funds on ROSA is in the individual savers’ control since they have custody of their hard-earned savings and investment. ROSA’s ecosystem growth will generate more yields for its pension plans, causing a positive feedback loop that rewards the user, not the intermediary.
Find out more about ROSA FINANCE and make the best decision for your financial future.
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