Introduction

Abstract

In most cases, reaching old age implies losing the human capital out of which labour services can be given in exchange for income. Saving during adulthood is therefore necessary to accumulate other forms of capital, real or financial, whose services the ‘old’ can give in exchange for the goods and services being produced by the ‘young’. Mandatory pension plans represent an efficient response to myopic behaviour leading individuals to save too little for their old age. Moreover, even forward-looking individuals face difficulties in drawing up an efficient saving plan for retirement, since they would be inclined to protect themselves from the risk of having no income in the event of surviving well beyond the average age of death.