The Harvard pension moment

Glossary of difficult words

incentive - a thing that motivates or encourages someone to do something;

2% of salary - this figure is not precise (due to the way taxes and pension contributions are calculated) and is used for simplification;

to win someone over - to gain the support of someone by action or persuasion;

3% "state" contribution - it is not entirely clear who, in the event of death, will keep the 3% amount that is diverted from the state pension system into the private system;

residual - left over (after the insured person dies);

scam - a dishonest scheme; a fraud.