By postponing the decision by three years this individual has saved US$ 36,000.00 in regular investment but has lost US$ 1,678,118 in retirement funds. This is the concept of compounding.
Local pension providers often do not have enough asset classes available to properly diversify your retirement plan. The size of the local stock exchanges often do not allow them to properly diversify, with the result that most of your retirement funds get invested in short term government bonds (treasury bills), which means that you are trying to structure a long-term investment strategy by using short term investment vehicles. This usually will lead to disaster. On top of this most senior executives do not receive tax benefits on most of their contributions.