Private mandatory retirement provision: design and implementation challenges

In 1992, Australia introduced the Superannuation Guarantee, the first private mandatory retirement saving policy in the English-speaking world. At that time, the only country to have adopted a policy of this type was Chile, in 1981.2 Private mandatory policies require either employers and/or employees to invest some fraction of the employee’s wages with a private sector organization, with the aim of eventually helping to finance the employee’s retirement. Typically, these worker accumulations are defined contribution (DC), fully funded, and kept in individual accounts.