Opinions are divided on whether it is the individual’s responsibility to ensure their financial security in retirement or whether governments should cover essential services. This essay will explore both of these perspectives, and then believe that it is the responsibility of retirees.
It is commonly believed that the state should fumish essential services at no cost to those who have retired, but I disagree with this belief. It is well argued that after a lifetime of hard work and paying taxes, the older generation deserves to benefit from those taxes in retirement. However, from my understanding, public bodies are not fulfilling this expectation. Current workers’ taxes are used to pay pensions for the present retirees, a system that risks collapse as the number of retirees grows and the workforce diminishes. With people living longer and having fewer children, this is precisely the situation we face today
For that reason, I support the view that individuals should be responsible for their own retirement provisions, for reasons related to efficiency and avoiding complacency. With regard to the former, I think that a pension system based on individual responsibility is more efficient than government schemes, as government funds may be diverted to other projects and lost to bureaucracy. The second reason is that if people rely on government-provided services, they may take advantage of them and not save adequately for the future. For instance, they might spend their savings carelessly, assuming they will receive free services from the government.
In conclusion, although both views have merits, I find the argument for requiring individuals to save for their retirement more convincing.