<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Current plans to permanently fix the level of benefits provided by the German Statutory Pension Scheme are at odds with the reality of demographic ageing and the requirements for sustainable pension policies. Instead, the causes of the ageing process ought to be addressed through poten-tially unpopular reforms. Linking the statutory retirement age to further life expectancy and building up supplementary funded pensions are core elements of a far-sighted reform that could stabilise the German system of old-age provision in the long run. In the short run, increasing con-tribution rates and reducing the benefit level are inevitable. This should be communicated very clearly.</p>
</abstract>

Current plans to permanently fix the level of benefits provided by the German Statutory Pension Scheme are at odds with the reality of demographic ageing and the requirements for sustainable pension policies. Instead, the causes of the ageing process ought to be addressed through poten-tially unpopular reforms. Linking the statutory retirement age to further life expectancy and building up supplementary funded pensions are core elements of a far-sighted reform that could stabilise the German system of old-age provision in the long run. In the short run, increasing con-tribution rates and reducing the benefit level are inevitable. This should be communicated very clearly.

Recognising Reality, Designing a Sustainable Pension System

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Realitäten anerkennen, Rente zukunftsfähig gestalten

Current plans to permanently fix the level of benefits provided by the German Statutory Pension Scheme are at odds with the reality of demographic ageing and...

Recognising Reality, Designing a Sustainable Pension System

Published Online: Feb 22, 2024

Page range: 77 - 81

DOI: https://doi.org/10.2478/wd-2024-0027

© 2024 Martin Werding et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.