I suggested a two-tier system where there is a low, albeit transparent, payout to individuals when they retire. The majority of their income, however, would be their responsibility to save. The government would aid this by offering a “portable 401k” account that followed the employee, not the employer.
Tax advantaged, low or zero fees, and automatic enrollment would preserve the incentive to work and save, a small “nudge” that would greatly reduce the reliance on the first tier.
An expanded version of this could be helpful in an AGI scenario.
Thanks, J.K.! I appreciate your thoughts on this. The idea of potentially decoupling the universal benefit / pillar 1 from labor income and tying it to something like land value tax is interesting. On the portable 401k: There must be some basic portability today already right? But I guess the idea is that management-wise it's more like the third pillar? I would very much like that. Puts responsibility on individuals and let's managers of funds / UIs compete. My third pillar app is much better than my second pillar interface.
Nice read Kevin. This is a sound proposal and I may incorporate some of these ideas into my own essay on the topic: https://www.lianeon.org/p/rethinking-social-security
I suggested a two-tier system where there is a low, albeit transparent, payout to individuals when they retire. The majority of their income, however, would be their responsibility to save. The government would aid this by offering a “portable 401k” account that followed the employee, not the employer.
Tax advantaged, low or zero fees, and automatic enrollment would preserve the incentive to work and save, a small “nudge” that would greatly reduce the reliance on the first tier.
An expanded version of this could be helpful in an AGI scenario.
Thanks, J.K.! I appreciate your thoughts on this. The idea of potentially decoupling the universal benefit / pillar 1 from labor income and tying it to something like land value tax is interesting. On the portable 401k: There must be some basic portability today already right? But I guess the idea is that management-wise it's more like the third pillar? I would very much like that. Puts responsibility on individuals and let's managers of funds / UIs compete. My third pillar app is much better than my second pillar interface.