Economics at your fingertips  

Macroeconomic Consequences of the Funded Pension System Illusions and Realities

Camille Logeay, Volker Meinhardt, Katja Rietzler () and Rudolf Zwiener

No 43e-2009, IMK Report from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute

Abstract: The pension reforms of the years 2000 until 2007 were supposed to attenuate the foreseeable effects of demographic change on the pension system. This is why the retirement age was raised, the pension level was lowered and a so-called sustainability factor ("Nachhaltigkeitsfaktor") was introduced into the pension formula. This approach meant a fundamental change of objectives - from safeguarding living standards in retirement to the stability of contribution rates. The lower future pension level is to be complemented by the subsidised formation of a private capital stock ("Riester pension") without employer participation. The analysis of the macroeconomic consequences of this reform shows that the chosen policy of enhanced funding both dampens growth and leads to insufficient income in old age. Thus the current strategy is not suitable for alleviating the demographic burden.

Pages: 15 pages
Date: 2009
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found ( [301 Moved Permanently]-->

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in IMK Report from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute Contact information at EDIRC.
Bibliographic data for series maintained by Sabine Nemitz ().

Page updated 2020-11-21
Handle: RePEc:imk:report:43e-2009