Scenario: Concerns about its citizens' financial health after retirement, the government of LibPat is considering a few different approaches: (1) the government deducts a certain amount from worker's paychecks and invest on their behalf; (2) the government enrolls workers in a retirement saving plan but gives them a chance to opt out of the plan or choose a different plan; (3) the government runs a nationwide campaign to inform people of the importance of retirement savings.
-Refer to the scenario above.Which of the following best describes the rationale behind policy 2?

Question

Quizplus · Accepted Answer

This policy is based on the idea that people generally prefer to make their own choices, but may struggle to save for retirement on their own. By enrolling workers in a retirement saving plan but giving them the option to opt out or choose a different plan, the government is providing a default option while still allowing individuals some level of choice and agency.

Scenario: Concerns About Its Citizens' Financial Health After Retirement, the Government