You're wrong actually because all state run pension funds are nothing but ponzi schemes. In the end the people get totally screwed. In a state run pension fund no money actually exists, money is paid as new tax money comes in. By contrast in a private pension fund money is actually there, invested in different company shares, bonds, equity and such.
It's HUGE difference!
Yeah, sure, that can happen. But it's not as black and white as that. In this case particularly, for the time being, there are some sort of real assets that exist. State run pensions aren't necessarily paid just out of taxes. Here's an example:
http://www.government.se/sb/d/15473/a/183496. Sure, they could get looted down the track, but that's not inherent in the fact that it is state run.
Not sure if its inherently wiser to put trust in a large private financial institution to hold onto people's money and look after their best interest over several decades over a state run one, personally. There's certainly been no lack of private funds where the money somehow disappears into somebody's pocket.
Since when are we all about cheering for large private financial institutions, anyway? Fuck them in their profit motive, parasitic faces I say.
Worth adding though, the way things are going I wouldn't be putting too much stock in either long term.
I trust the private sector WAY more than any government run operation. You can see this in real world. Whatever government touches turns to shit because big centralized operations are doomed to failure from the very start and gov is just that, one big centralized operation. This is why big companies need to be broken into smaller piece when they become too big. They can't function properly anymore.
Companies need to stay competitive and liquid and in order to do that they have to please consumers or pension fund holders in our case. Either that or they go out of business. The government, however, when it runs out of money, instead of defaulting just takes some more by force at the expense of the people.