Question

What impact would there be on the economy if every American had and implemented a retirement plan?

Answer 1

A retirement plan provides financial support after retirement . So after 65 people who are counted as dependency burden of the economy will no longer be a burden . A retirement plan would actually increase aggregate demand in the long run . People can have the same purchasing power even after retirement . Also implementing a retirement plan would mean increase in savings rate at present . This can have two effects , decrease in AD at present and more supply of loanable funds which would mean more investment in the economy . This can lead to more employment generation also . So such an endeavour of having a retirement plan would be very beneficial for the economy .