Some countries require their citizens to allocate a fraction of their labour market wages to a retirement savings account, which can only be accessed when people reach retirement age.

Consider a government policy that allows people to access their retirement savings before they reach retirement age. Which of the following statements would be correct in relation to the trade-offs involved with this policy:

Group of answer choices

A trade-off exists, but only for the individual, because it is their money.

A trade-off exist for both the government as well as individuals.

There are no trade-offs associated with this policy.

A trade-off exist, but only for the government, because this is a government policy.