Comparison of Retirement Plan between Bangladesh & U.S.A.

Abstract

The procedure of creating retirement plans in the USA and Bangladesh is explained in this study in detail. And via doing a comparison analysis, I sought to determine how efficient and well governed the US retirement industry is compared to how far behind and poorly organized Bangladesh is in this area. The study begins by outlining the USA Retirement process. Even in cases of sole proprietorship, there are several distinctive characteristics of US retirement policies that make them so well liked and frequently utilized by both governmental and non-governmental organizations. Government regulations, public desire to save, public right to information, contribution to the national economy, and contribution to the domestic economy are all reasons why this saving strategy is so well-liked. The US government is highly concerned with safeguarding retirees' rights and providing for their financial security throughout their retirement. Guidelines are provided by the Internal Revenue Service (IRS) and the Department of Labor (DOL) to help employers administer retirement benefit plans and offer retirement benefits to their employees. The retirement plan also enables the employer to save money on taxes on the company's profits. The Bangladesh Retirement Industry is briefly introduced in the later section of the paper. Different disorganized and completely unstructured pension systems are present in both the public and commercial sectors. There are no adequate regulations for retirement benefits including gratuities, benevolent funds, housing provided by the government, group insurance, etc. In the third chapter, I looked for significant differences between Bangladeshi and American retirement policies. Government regulations, citizen rights, economic participation, reliance, benefit amounts, and other factors also vary. Finally, based on my results, I provided a few recommendations, such as the need for the government to be serious and concerned about defending retirees' rights. If the government modifies or reshapes the policy, it could be viable to use a structured approach. Bangladesh's retirement provident fund will benefit from this research as well.