12 Pages Posted: 10 Mar 2013
Date Written: March 1, 2013
Nudges toward voluntary defined-contribution retirement savings have moved many non-savers into savings but have left many behind. I argue that it is time to switch from libertarian-paternalistic nudges to fully paternalistic shoves. I draw on evidence from the United States and other countries to advocate a retirement savings solution centered on a paternalistic second layer of mandatory private defined-contribution savings accounts in a retirement savings pyramid, above the paternalistic first layer of Social Security and below the libertarian third layer of voluntary savings.
Keywords: Retirement savings, Social Security, defined-contributions, Retirement
JEL Classification: G30, H55, H50
Suggested Citation: Suggested Citation