The three pillars of a pension system are defined in varied ways. The author focuses on a definition provided by the World Bank in its 1994 Report. He argues that with a universal Pillar 1 (a flat, subsistence pension), there is no need for Pillar 2 (earnings-related pensions). Pillar 3 (voluntary retirement savings) should not receive tax subsidies, which are regressive and also have not been shown to have any significant effect on private saving. Such a pension scheme may appear utopian, but it is in effect in New Zealand.

10 p.

Includes bibliographical references.