4.Present pension structures no longer work. They were established inA more youthful period with relatively few older people who were often poorAnd iii,And generally spent onlyA short time in retirement. In richCountries today, older peopleAre often well-offAnd in good health,AndAre spendingAround 20 years in retirement. Therefore there is the need for reform.
This survey has presented theArguments for more private fundingAnd for fairer pensions. SuchChanges willCreate motives for individuals to takeCharge of their own retirement needs rather than leaving the task to the state. This, in turn, will make the provision of public pensions moreAfford-Able.
Even so, the state willContinue to playA leading role in pensions.AtA minimum, governments must offerA safety net, probably in the form ofADefinedBenefit financed through taxation, for people who for some reason have notBeenAble to provide for themselvesAnd who would otherwiseBe miserable in oldAge. MoreBroadly, there isACase for the state to offerA slimmed-down pay-as-you-go pension system,AlthoughAs farAs possible this shouldBe organizedAlongDefined-contributions lines. Such provision widens the range ofAssets to include humanCapitalBecause the effective returnComes from total wages,And offersA safe if low return.
GovernmentsAlso have toCreateA suitable framework for effective private pensions.Administrative(行政的)expenses have toBe tightlyControlled,AndAppropriate tax motives have toBe offered to encourage voluntary pension saving. Where the state providesA generous safety net, private-pension saving may have toBe made mandatory(强制的), otherwise many people will notBother.
So much for theDevelopedCountries,But what of the more youthful populations of tile rest of the world? In 1994, the WorldBankCameDown heavily in favor of more funding in privateAccounts. It thought the state's role shouldBe to provideA smallish first pillar with the limited task of providing protectionAgainst old-age poverty,And toCommandA privately-funded second pillar to provide theBulk of pensions.
36. More private fundingAnd fairer pensions____.
A. Can urge people to save more private-pensions
B. mayBe financed through tax
C. Can lessen theBurden of the state
D. Can provide more public pensions