The paper examines the dominant views on the adoption of mandatory Fully Funded pension schemes (FF) as a partial or complete substitute for the unfunded PAYG. Three obstacles to the FF reform are envisaged. To begin with, the reform may fail to boost workers' marginal propensity to save, since...

Many critics of Fully Funded (FF) pension schemes argue that these schemes would meet problems similar to those that, according to the dominant opinion, undermine Pay-as-you-go (PAYG) schemes as a result of the present demographic mutations, lower fertility and higher longevity. More...