How can the government make sure that people save enough money to live on when they are old?

Nowadays personal budget management is considered to be a key determinant of personal well-being.

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, people face the issue of learning some basic assumptions of behavioural economics.

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essay will discuss the main problems associated with financial illiteracy and propose some possible solutions to avoid them.

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with, saving enough money on the pension enables a person with a variety of opportunities for numerous activities ,

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, travelling, language courses, yoga classes and other hobbies to maintain the brain and physical activity, which ensures a longer and healthier life.

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, the possible solution is to impose a higher tax on the income of the population providing a possibility to increase pension funds.

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, the support of citizens is not anticipated for

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measure, as they care about consumption in the present moment and expect future inflation, which devalues savings.

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, it is essential to alter the whole culture of money to project progress in the amount which individuals put aside. To be more precise, one component is the historically observed inflation in a particular region,

for example

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, if

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depreciation of a national currency is foreseen, it does not seem rational for people to hold money.

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reason, another solution is to introduce the lesson on financial literacy at schools, but in spite of the obvious advantages, extra time is required and the probability that

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will decrease the academic performance of children is quite high. In conclusion, I am convinced that it is a major problem in plenty of countries.

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, giving some measures a try

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as higher taxes or the introduction of a novel school lesson may be beneficial.