Temptation and social security in a dynastic framework

► We analyze the effects of social security in a dynastic framework with temptation. ► Temptation distorts individuals' savings and triggers self-control costs. ► Altruism mitigates the adverse saving effects but magnifies the self-control costs. ► Pay-as-you-go social security works as a self-control cost reducing device. ► The welfare outcome depends on interactions between altruism and temptation.