Vittas, Dimitri2012-08-132012-08-131996-02Viewpoint. -- Note no. 72 (February 1996)https://hdl.handle.net/10986/11631In most countries, participation in a public pension system involving some kind of redistribution is compulsory, while participation in private pension schemes is voluntary. There are growing fears in many countries that the value of public pensions will not be sustained. There are similar fears about company pensions. The credibility of company pensions depends on the integrity and solvency of large employers, which can no longer be taken for granted. These problems point to a need to refine compulsory saving. Drawing on the experiences of countries in Asia, Latin America, and elsewhere, this Note provides some guidance on answering the following questions: 1) Whom to compel? 2) Defined contribution or benefit? 3) How large should compulsory contributions be? 4) Who should manage the funds? 5) What types of regulation are appropriate? 6) What state guarantees for what system? 7) How to offer tax incentives?CC BY 3.0 IGOAGENTSANNUITIESANNUITYCAPITAL MARKETSCAPITALIZATIONCOMMISSIONSCONTRIBUTION RATECOVERAGEDEFINED BENEFIT SCHEMESDEFINED CONTRIBUTION SYSTEMSDISCRIMINATIONEMPLOYMENTFIDUCIARYFRAUDHOUSINGINCOMEINDIVIDUAL ACCOUNTSINFLATIONINSURANCEINSURANCE COMPANIESINTEGRITYINVESTMENT GUIDELINESINVESTMENT PERFORMANCEINVESTMENT RETURNINVESTMENT RETURNSLIFE EXPECTANCYLOW INFLATIONMANAGERSMANDATORY RETIREMENTMARKETINGMINIMUM PERIODMORAL HAZARDNORMAL RETIREMENT AGEOPERATING COSTSPENALTIESPENSION FUNDPENSION FUNDSPENSION SCHEMESPENSION SYSTEMPENSIONSPREMIUMSPRIVATE PENSIONPRIVATE PILLARPRIVATE SECTORPROFITABILITYPUBLIC PILLARRATESREPLACEMENT RATERESERVESRETIREMENTRISK TAKINGSAFETYSOCIAL ASSISTANCESOLVENCYSTATE GUARANTEESTAX RATEWAGE GROWTHWORKERS PENSIONSTAX INCENTIVESPENSION FUNDSINVESTMENT POLICYTAX EXEMPTIONSOCIAL SECURITYCOMPANY PENSIONSSTATE GUARANTEESCOMPULSORY SAVINGPUBLIC PENSION SYSTEMSWorld Bank10.1596/11631