Retirement Planning with a Comparative Analysis between Bangladesh and USA

Abstract

The primary subject of this research is “Retirement Planning with a Comparative Analysis between Bangladesh and the USA”. This study evaluates the effectiveness of financial stability of both of these countries. It examines for important rules, analyzes their effects, and make recommendations for Bangladesh based on lessons learned from the US model. Bangladesh's approach to retirement planning is heavily reliant on government pension systems; there is no alternative following system. The operating system faces challenges such as insufficient finance, administrative challenges and minimal private sector participation. On the other hand, the National Pension Scheme (NPS) seeks to encourage voluntary savings, although the overall regulatory environment is underdeveloped. In contrast to the Bangladesh system, the ERISA-regulated system in the United States provides a well-established structure with a variety of retirement options, such as employer-sponsored plans and IRAs, which provide strong fiduciary safeguards. Bangladesh's regulatory framework is less thorough than the United States'. Because of the little financial and social security support. Furthermore, the US system aims to provide improved financial stability for retirees through tax breaks and a stable financial market.