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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Justifying mandatory savings for old age (English). Background paper for regional study on social security reform Washington, DC: World Bank. http://documents.worldbank.org/curated/en/469871468779957604