Question

Tell about relationship between welfare state and pension system model / characteristics

Answer 1

The welfare state is

a form of government int that the protects and promotes the economic and social well-being of the citizens.

By using this principal equal opportunity, equitable distribution of wealth, etc are done for a good life of citizens.

In the UK pension scheme was started to protect interest of the low-income workers ,which were not satisfied by market,

thus low-cost pension fund (NEST), a ‘public option’ within the market, was created.

At low level of charge these workers were accessed to this scheme as compare to previous one scheme and not reserved for high income workers and organised workers only.

In Israel, capping on pension charges through government regulation sought to empower consumers, while providing minimal social protection at higher price.

Every prosperous community has a pension system at present; the citizens rely on its stability and the system. The system's stability and financial sustainability are some of the key preconditions for successful operation of the state and satisfaction of its citizens. It is therefore very important to have a sound database for pension system analyses and a reliable model for pension system simulations and projections,