Some people believe that the government should take care of old people and provide financial support after they retire. Others say individuals should save during their working years to fund their own retirement. What is your opinion? Give reasons for your answer and include examples from your own experience.

The ageing population has led to increasing concerns about pensions and their future sustainability. There are conflicting views on whether the government or the private sector should be responsible for old people during their

retirement

.

Although

private

pension

is becoming popular, my view is that it is the government’s responsibility to provide financial stability to its senior citizens in

retirement

.

To begin

with

state

pension

programs will help alleviate poverty for older citizens after

retirement

.

For example

, in Mexico, studies showed that 55% of its workforce benefited from

state

pension

programs and while those in non-contributory programs alleviated poverty by 20%. These programs are usually tied to employment, so that workers will receive financial and health care benefits when they get old and stop working. In some countries, the

state

pension

plans

also

include non-contributory programs which benefit those workers whose employers were not compliant with superannuation systems as well as for those individuals that never worked by reason of disability, incapacity or possibly no proper education.

Further

superannuation schemes provide social security for older people in the later years.

Such

schemes (often mandatory) encourage long term savings. There is

also

recognition that adults during their workforce years do not provide for their senior years because of current consumption over savings and insufficient saving for

retirement

when the person is younger. With government

retirement

programs, there is a redistribution of income within a person's lifetime to enable accumulation of wealth.

This

is illustrated when a 20year old may not even consider

pension

contributions upon entering the workforce and focus more on household expenditure or mortgage repayments. In conclusion, government funded pensions benefit older citizens through poverty alleviation and social security which I think should only be institutionalised through the

state

and not burdened on individuals in the private sector.