Economics focus

摘要

Governments around the world want workers to save more for their pensions. Alarmed at the impending strains on public budgets as the post-war baby-boom generation nears retirement, they are anxious to limit the load on already stressed tax-financed pay-as-you-go pension systems. But in turning this policy goal into reality they face an awkward dilemma. Left to their own devices, many workers do not save enough for their retirement, if they save at all. Exhortation falls on deaf ears; even generous tax incentives are ignored. But if the voluntary approach is ineffective, compulsion is an invidious alternative. Although individuals will control the savings they are forced to make, many will resent mandatory contributions and regard them as a tax increase.