If there is a means tested basic income for old age, households will tend to reduce precautionary savings to an … income types where compulsory savings are found to be Pareto improving only up to a point. Increases in contribution rates … system (with intragenerational fairness) plays a role similar to compulsor y savings in preventing the savings moral hazard …

In the presence of means tested basic income for old age, households will tend to reduce precautionary savings to an … representative agent framework with two income types, compulsory savings are found to be Pareto-improving up to a point. Beyond that …