Will Selfies stick? Pension bonds are an ingenious idea for providing retirement income

Press review The Economist “(…) Lionel Martellini of EDHEC, a French business school, and Robert Merton of the Massachusetts Institute of Technology (a Nobel laureate in economics) have come up with an alternative. Workers would buy government-issued bonds while in employment; these would pay no interest until retirement. Over the next 20 years (the typical life expectancy on retirement) bondholders would receive payments comprising interest plus the return of the capital. These would be linked to inflation, or another measure such as average consumption. (…)” Copyright The Economist https://www.economist.com/finance-and-economics/2018/05/19/pension-bonds-are-an… 2018