Asset Buyback Scheme Case Study

Summary: Introduce a compulsory pension scheme 

What does this hope to achieve: 

Citizens are able to retire sustainably without relying on government funding 

How can this be achieved: 

The government of Salusia will set up a joint-initiative with a private bank for this scheme, where citizens will need to allocate a certain portion of its income to the bank every month as mandated by the law to do so for every citizen. 

In order to prepare citizens for this introduction of pension scheme, the government would introduce campaigns to raise awareness and educate the public on the necessity of such a scheme; by reducing the funding needed to support the aged in the country, more of these funds could be used to create jobs, build new infrastructure and improve the education system in Salusia, while allowing each individual to retire comfortably. 

This is a long-term strategic initiative which will only bear results when the current working class of the age between 20-35 were to retire. 

Parties involved: 

Government, Private Bank, Individuals 

Benefits of this recommendation: 

1. Instead of setting up the initiative altogether by the Government itself, it would be better to let it run by a corporate bank instead as they would have the expertise to manage the savings much more efficiently than others would. 

2. This could help to reduce costs by the Government if they had to invest on this initiative all by themselves. 

3. By making it compulsory, everyone would need to contribute to their own retirement funds without draining on the government’s resources, thereby achieving the goal as mentioned above. 

4. A joint-initiative might help quell unease as citizens who are initially worried about corporate banks defaulting, would know that with the Government involved in this, they would definitely be able to get their money back. As such, citizens would be able to gain the best of both worlds, with a more efficiently managed...