What are the social and individual gains from a policy that mandates saving for retirement? This paper reviews the five rationales that are most frequently given for introducing a mandate - myopia, to counter savings distortions (moral hazard) caused by first-pillar pension programs, a systematic mistake by workers in assessing the length and cost of their old age until they are too old to make good this mistake at a modest cost (we call this “improvidence”)...
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INFORMACIÓN
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2004/01/01
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Documento de trabajo departamental
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30484
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1
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1
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2010/07/01
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Justifying mandatory savings for old age
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subsistence level of consumption