Impact of regulatory frameworks on retirement planning with a comparative analysis between Bangladesh and the USA

Abstract

This report mainly focused on the regulatory frameworks for retirement planning in Bangladesh and the United States, assessing their effectiveness in ensuring financial security for retirees. It tries to identify key regulations and their impact and suggests improvements for Bangladesh based on insights from the United States model. Bangladesh's perspective on retirement planning is largely dependent on government pension schemes, there is no other following system. The running system faces issues like inadequate funding and limited private sector involvement. On the other hand, the National Pension Scheme (NPS) aims to promote voluntary savings, but the overall regulatory environment system is underdeveloped. The USA. system, regulated by ERISA, presents a well-established structure with various retirement choices, like employer-sponsored plans and IRAs, which offer robust fiduciary safeguards, in contrast to the Bangladesh system. The report is written on surveys (paper review) and interviews, trying to find significant differences in regulatory system, maturity, and scope. Bangladesh’s regulatory system is less comprehensive than the US system. Because of the fewer financial and minimal social security support. Moreover, the USA. system tries to give better financial security for retirees through tax incentives and a secure financial market. To improve the retirement system in Bangladesh, the report will recommend increasing public awareness of retirement law, encouraging private sector participation, simplifying the regulatory system, targeting low-income workers, and implementing key reforms to ensure long-term financial security for retirees.