15 Years of Pension Reform in Germany: Old Successes and New Threats

Holger Bonin ()

No 11, IZA Policy Papers from Institute of Labor Economics (IZA)

Abstract: The paper surveys the state of German pension system after a sequence of reforms aimed at achieving long-term sustainability. We argue that the latest reforms have moved pension provision in Germany in principle from a defined benefit to a defined contribution scheme, and that this move has stabilized pension finances to a large extent. We furthermore argue that the real economy consequences of the global financial crisis create threats to the core success factors of the reforms – cutting pension levels and raising mandatory pension age. Finally the paper discusses further possible reform measures, including the option to install a fourth pillar providing income in retirement through working after pension age.

Keywords: Germany; fiscal sustainability survey; financial crisis; pension financing (search for similar items in EconPapers)
JEL-codes: H55 J11 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2009-07
New Economics Papers: this item is included in nep-age
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Citations: View citations in EconPapers (15)

Published - published in: The Geneva Papers on Risk and Insurance - Issues and Practice, 2009, 34, 548-560

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Journal Article: 15 Years of Pension Reform in Germany: Old Successes and New Threats (2009)
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