Why have Social Insurance? Other justifications Lack of Foresight / Paternalism For example, some individuals do a poor job of planning for their retirement Moral hazard “ Gaming the system Economize on Decision-making costs Income distribution7 Why have Social Insurance? • Other justifications – Lack of Foresight / Paternalism • For example, some individuals do a poor job of planning for their retirement. – Moral Hazard • “Gaming the system” – Economize on Decision-making costs – Income distribution