[lucketone]

Your analysis is fully correct.

I want to add one more aspect to this.

If I gamble my pension away, I have detrimental effect on my neighbours and the rest of society. Sure I could work for a little longer, but not for too long.

One non-exhaustive example: If I don’t die right after my last contract ends, it means I’m consuming food and have some kind of shelter, which is payed by somebody.

[luckylion]

That's the stability vs risk trade-off, I think. The European approach is much more stable, but stability isn't free.

I'd compare it to investing in the stock market (volatility & good yield) vs investing in government bonds (more secure, you know what you'll get back after they mature, lower yield).