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Paradox of choice in a mandatory pension savings system: challenges for Australian retirement income policy

Gallery, Gerry T. and Gallery, Natalie (2005) Paradox of choice in a mandatory pension savings system: challenges for Australian retirement income policy. Policy & Politics 33(3):pp. 519-532.

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Abstract

As the Australian pension system has become increasingly privatized and less regulated, decisions about the quantum and nature of pension investments have progressively shifted to pension fund members. This choice environment provides members with the ability to control their own pensions, but it also creates challenges for ensuring pension assets are managed in way that will maximize returns and, ultimately, retirement benefits. Government initiatives to address these challenges have principally focussed on disclosure and education and not on the more pervasive behavioural constraints that limit the effectiveness of the existing policy. We advocate policy solutions consistent with libertarian paternalism where the government provides a competitive choice environment, but actively intervenes to set suitable pension savings and investment defaults.

Item Type:Journal Article
RM Number:2007003389
Status:Published
Keywords:Retirement income; policy; Mandatory pension savings; Superannuation; Australia
Subjects:360000 Policy and Political Science > 360200 Policy and Administration > 360201 Public Policy
ID Code:4840
Deposited By:Gallery, Natalie
Deposited On:23 August 2006
Alternative Locations:https://www.policypress.org.uk/journals/policy_politics/
Copyright Owner:Copyright 2005 Policy Press
Copyright Statement:Reproduced in accordance with the copyright policy of the publisher.