SeLFIES would be An AEgis to Irish Pensions by Arun Muralidhar :: SSRN

Ireland is about to introduce Auto Enrollment (AE) to enhance private pensions, but AE provides no guarantee of a secure retirement. A good pensions system is one where retirement savings are secure, well-managed, cost-efficient and easily understood, thereby encouraging pensions savings. This article argues that Ireland could achieve this vision by copying an innovation pioneered by Brazil in 2023 to ensure retirement security (especially for poor, and self-employed workers). Ireland's NTMA should issue SeLFIES (Standard-of-Living-indexed, Forward-starting, Income-only Securities). The SeLFIES bond is a single, simple, liquid, low-cost, relatively low-risk (government-issued) instrument, easy-tounderstand for even the most financially unsophisticated individual, because it matches the desired real retirement income profile of individuals and embeds accumulation, decumulation, compounding and inflation-adjustments. It ensures that AE contributions lead to secure guaranteed real retirement income.