We provide a new model for an effective distribution of pension tax incentives, following the implementation of mandatory pension among OECD countries, by a comparison to the expected poverty rate in retirement. According to the current depositing and incentives system, the anticipated income in retirement will lead to a drop of between three to four deciles below the poverty line. Therefore, the suggested alternative mechanism will provide equal pension benefits for the overall community of workers and will be defined as an increase in pension savings rather than a current tax saving. This move may lead to a rise in occupational pension and to a diminishment in poverty during the retirement age, with no increase in the state budget.