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Put on the Back Burner: On the Final Report of the Commission "Reliable Intergenerational Contract"

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  • Joachim Ragnitz

Abstract

The Federal Government has commissioned the Commission "Reliable Intergenerational Contract" to develop recommendations to ensure the sustainability of pension finances. The Commission's report falls well short of the ambitious expectations. The proposed measures will not solve the financing problems of the Statutory Pension Insurance Scheme, but will ultimately only lead to the federal subsidy to the pension insurance scheme having to be increased. Without a further extension of working life, it will not be possible to solve the problem of financing the pension insurance system, as it is irrelevant to the working generation whether it has to pay for pensioners through taxes or social security contributions.

Suggested Citation

  • Joachim Ragnitz, 2020. "Put on the Back Burner: On the Final Report of the Commission "Reliable Intergenerational Contract"," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 27(03), pages 22-24, June.
    • Handle: RePEc:ces:ifodre:v:27:y:2020:i:03:p:22-24
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