Mandatory Retirement Savings

12 Pages Posted: 10 Mar 2013

See all articles by Meir Statman

Meir Statman

Santa Clara University - Department of Finance

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

Statman, Meir, Mandatory Retirement Savings (March 1, 2013). Available at SSRN: or

Meir Statman (Contact Author)

Santa Clara University - Department of Finance ( email )

500 El Camino Real
Santa Clara, CA 95053
United States
408-554-4147 (Phone)
408-554-4029 (Fax)

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