What are the major technical and political factors that can cause pension benefit funding to pose a threat?

 

The major technical factors that cause pension benefit funding to pose a threat;

-unwarranted access to pension database.

-lack of integration to the pension and tax system

Political factors that can cause the pension benefit funding to pose a threat;

-political restructuring of pension contribution

-political influence that can result in government misusing the pension savings

Major technical factors that cause pension benefit funding to pose a threat;

-unwarranted access to pension database-most of the pension database are stored through automated technological system. This poses the risk of cyber attacks such as hacking that may target the database. Such cyber attacks can significantly interfere with the individual databases on pension.

-lack of integration to the pension and tax system-pension system should be integrated with tax system to facilitate the deductions on the contributions and taxation on pension benefits. If the pension system is not integrated, there would major risks due to possible tax evasions.

Political factors that can cause the pension benefit funding to pose a threat;

-political restructuring of pension contribution-through legislation, political system may increase the pension contributions or demand more tax on the pension benefits. This may increase the burden on taxpayers.

-political influence that can result in government misusing the pension savings-pension savings would be at risk if political system is allowed to utilize pension funds to support their expenditure. The retiring taxpayer may face delays in receiving their benefits if this is enabled.