Why Forcing People to Save for Retirement May Backfire ∗

  title={Why Forcing People to Save for Retirement May Backfire ∗},
  author={Monika B{\"u}tler},
Early retirement is predominantly considered to be the result of incentives set by social security and the tax system. But the Swiss example demonstrates that the incidence of early retirement has dramatically increased even in the absence of institutional changes. We argue that an actuarially fair, but mandatory funded system may also distort optimal individual allocation. If individuals are credit constraint (or just reluctant to borrow), a higher than desired retirement capital This research… CONTINUE READING


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