Answer to Question #151906 in Finance for Anh

Question

how does the government incentives people to save for retirement

Answer 1

government incentives people to save for retirement through tax incentives and non-tax incentives.

Tax incentives come from a differential tax treatment applied to funded pension arrangements as compared to other savings vehicles.

Non-tax financial incentives are payments made by the government directly into the pension account of eligible individuals. They can take the form of matching contributions or fixed nominal subsidies.