Macroeconomic Consequences of the Funded Pension System Illusions and Realities
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.
Year of publication: |
2009
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Authors: | Logeay, Camille ; Meinhardt, Volker ; Rietzler, Katja ; Zwiener, Rudolf |
Institutions: | Institut für Makroökonomie und Konjunkturforschung (IMK), Hans Böckler Stiftung |
Saved in:
freely available
Extent: | application/pdf |
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Series: | IMK Report. - ISSN 1861-3683. |
Type of publication: | Book / Working Paper |
Notes: | Number 43e-2009 15 pages |
Source: |
Persistent link: https://www.econbiz.de/10010858951
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