In addition, there are earnings-based government programs such as the Canada Pension Plan and Quebec Pension Plan that are mandatory for those who earn employment income with limits and caps that results in a trade-off between forced savings
and financial prudency for retirement.
The main analytical result we obtain is that the paternalistic utilitarian solution does not necessarily imply forced savings
for the myopics.
To combat widespread evasion, Sadat continued Nasser's policy of forced savings
, raising them from 27 percent to 32 percent by 1981.
Many families use the EITC as a form of forced savings
that helps them buy durable goods like cars.
, limited choice, and redistribution).
If you look at China, eastern Europe, and Latin America moving into this type of forced savings
regime, think what it means in terms of international capital flows.
Every insurance agent will tell you that your best choice is to buy whole life or universal life for the forced savings
and the cash value.
It is sometimes said that forced savings
are necessary to counter the effects of another government program, the welfare system.
Is there an alternative to forced savings
to raise the level of contributions to the private funds?
If capital markets were complete and perfect, the very idea of forced savings
would be inconceivable, because those who prefer to save less always could borrow on the security of their future claims on personal "forced" savings.
Instead the proposals are all variations on forced savings
plans; some rely more on private savings than others.
Refinancing over 15 years is a type of forced savings
plan for people that are not disciplined savers.