RT Journal Article
SR Electronic
T1 Retirement Finance Reform
JF The Journal of Investing
FD Institutional Investor Journals
SP 76
OP 78
DO 10.3905/joi.2002.319509
VO 11
IS 2
A1 William G. Shipman
YR 2002
UL https://pm-research.com/content/11/2/76.abstract
AB It is argued that population aging will put severe pressure on the financing of government-sponsored pay-as-you-go retirement systems. Should tax-based financing be replaced, in whole or in part, with market-based financing? And, if so, should there be a minimum benefit guaranteed by the government? Such a guarantee raises the issue of moral hazard-that is, would individuals be protected against loss of capital, whatever their investment decisions? This article explores some of the trade-offs associated with this dilemma and suggests how to avoid it.