Will it Last? An Assessment of the 2001 German Pension Reform

Arbeitspapier

In May 2001, Germany adopted a fundamental pension reform cutting back public pensions and introducing personal pension accounts. The paper critically reviews the reform decisions and evaluates their long-term viability. It is shown that the adjustment of the Public Pension Scheme misses the proclaimed contribution rate and replacement ratio targets already under moderate economic conditions. However, the new private pension plans provide scope for further downsizing state pensions, necessary beyond 2025. As the enacted savings rate target is conservative, individual pensions keep retirement income sufficient even if returns to pension funds are low due to legal restrictions on savings vehicles.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 343

Classification and Topics

• Classification: Wirtschaft ; International Migration ; General Outlook and Conditions
• Subject: Pension reform ; pension funding ; fiscal projections ; Germany ; Gesetzliche Rentenversicherung ; Rentenreform ; Wirtschaftspolitische Wirkungsanalyse ; Alterssicherung ; Sozialversicherungsbeitrag ; Sparen ; Rendite ; Prognose ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bonin, Holger
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/21201
• Last update: 10.03.2025, 11:42 AM CET