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The Budgetary Costs of the Recent Pension Reforms

Author

Listed:
  • Joachim Ragnitz
  • Felix Rösel
  • Marcel Thum
  • Martin Werding

Abstract

We present simulation results for the German pension system up to the year 2050. The pension reforms of the past years will double the age-related additional burdens for pension insurance in the next ten years. The prolongation of the simultaneous constraints on the contribution rate and the pension level would constitute a severe challenge for the federal budget and thus for taxpayers. If financed solely via value-added tax, the standard VAT rate would have to rise from 19% today to around 30% by 2050.

Suggested Citation

  • Joachim Ragnitz & Felix Rösel & Marcel Thum & Martin Werding, 2021. "The Budgetary Costs of the Recent Pension Reforms," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 28(05), pages 03-06, October.
    • Handle: RePEc:ces:ifodre:v:28:y:2021:i:05:p:03-06
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    References listed on IDEAS

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    1. Axel Börsch-Supan & Johannes Rausch, 2018. "Die Kosten der doppelten Haltelinie," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(09), pages 23-30, May.
    2. Börsch-Supan, Axel & Rausch, Johannes, 2018. "Die Kosten der doppelten Haltelinie," MEA discussion paper series 201803, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
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    Cited by:

    1. Raffelhüschen, Bernd & Brinkschmidt, Teresa & Kohlstruck, Tobias & Seuffert, Stefan & Wimmesberger, Florian, 2022. "Ehrbarer Staat? Die Generationenbilanz. Update 2022: Demografie und Wachstum - Zwei Krisen geben sich die Hand," Argumente zur Marktwirtschaft und Politik 165, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.

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