Concluding remarks I am sometimes asked the following question: “You are in the process of increasing rates. Is your judgement that your rates today are significantly lower than they should be? What then is the level of the “neutral rate” that you would judge it appropriate to reach (as rapidly as possible)?” My response to such questions would be the following.
A useful test of a retirement system for a society is whether it sets up realistic expectations as to the future availability of real resources and, hence, the capacity to deliver postwork consumption without overly burdening the standard of living of the working-age population.