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Abstract Cutting pensions for the elderly is a difficult task for any government. The elderly are a large, politically active group, and they are viewed sympathetically by the rest of the electorate. In pension programs that are based on a system of contributory social insurance, a sense that benefits have been “earned” adds to recipients’…
Abstract Opt-out pensions pose many difficult design and implementation issues. The U.K. experience suggests several valuable lessons for U.S. policymakers. First, complex interactions between public and opt-out pensions may create confusion among workers, leading to both discontent and demands for policy change. Second, allowing recurrent opportunities to opt into and out of individual accounts increases…