Government Versus Private Pensions
Author: Shlomo Yitzhaki, Daniel Premisler
August 21, 2014
This policy paper compares the benefits of enacting a government pension system where the government collects and manages the pension savings of workers, versus the current situation where the market is privately managed under government regulation.
The comparison includes several measures: efficiency and enforcement of collection, the ability to enhance competition in the capital market in Israel, and the principles of government insurance versus private insurance and its significance for Israel. The conclusion drawn from the analysis is that the government pension system has advantages over the private system, both in terms of the management costs and in terms of returns to savers.
(In Hebrew only)