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We solve for Pareto optimal policy reforms and show that progressive asset subsidies provide a powerful tool for Pareto optimal reforms. On the other hand, earnings tax reforms do not always yield efficiency gains. We implement our Pareto optimal policy reform in an economy that features demographic change. The reform reduces the present discounted value of net resources consumed by each generation by about 7 to 11 percent in the steady state. These gains amount to a one\u2010time lump\u2010sum transfer to the initial generation equal to 10.5 percent of GDP.<\/jats:p>","DOI":"10.3982\/ecta15088","type":"journal-article","created":{"date-parts":[[2019,7,24]],"date-time":"2019-07-24T05:04:27Z","timestamp":1563944667000},"page":"1205-1265","source":"Crossref","is-referenced-by-count":37,"title":["Retirement Financing: An Optimal Reform Approach"],"prefix":"10.3982","volume":"87","author":[{"given":"Roozbeh","family":"Hosseini","sequence":"first","affiliation":[{"name":"Terry College of Business, University of Georgia"},{"name":"Federal Reserve Bank of Atlanta"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Ali","family":"Shourideh","sequence":"additional","affiliation":[{"name":"Tepper School of Business, Carnegie Mellon University"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"2359","published-online":{"date-parts":[[2019]]},"reference":[{"key":"ecta200042-bib-0001","doi-asserted-by":"crossref","first-page":"1","DOI":"10.2307\/2297746","volume":"56","author":"Abel","year":"1989","journal-title":"Review of Economic Studies"},{"key":"ecta200042-bib-0002","doi-asserted-by":"crossref","unstructured":"Ales, L., R. 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