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How an Unfunded Pension System looks like Defined Benefits but works like Defined Contributions: The German Pension Reform

Author

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  • Börsch-Supan, Axel

    (Sonderforschungsbereich 504)

  • Reil-Held, Anette

    (Mannheim Research Institute for the Economics of Aging (MEA) and Sonderforschungsbereich 504)

  • Wilke, Christina

    (MEA)

Abstract

This paper describes the German pension reform process 1992-2007 with a stress on a remark-able development: the public pay-as-you-go-financed pension system has almost silently moved from a traditional defined benefit system to a system which works in many respects like a defined contribution system. The paper combines economic with political considerations, hopefully offering a few lessons that are useful also for other countries.

Suggested Citation

  • Börsch-Supan, Axel & Reil-Held, Anette & Wilke, Christina, 2007. "How an Unfunded Pension System looks like Defined Benefits but works like Defined Contributions: The German Pension Reform," Sonderforschungsbereich 504 Publications 07-09, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    • Handle: RePEc:xrs:sfbmaa:07-09
    Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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    File URL: http://www.sfb504.uni-mannheim.de/publications/dp07-09.pdf
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    References listed on IDEAS

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    1. Börsch-Supan, Axel & Christina Benita Wilke, 2003. "The German Public Pension System: How it Was, How it Will Be," MEA discussion paper series 03034, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    2. Börsch-Supan, Axel & Reil-Held, Anette & Schunk, Daniel, 2006. "Das Sparverhalten deutscher Haushalte : Erste Erfahrungen mit der Riester-Rente," Papers 07-15, Sonderforschungsbreich 504.
    3. Axel Boersch-Supan & Christina B. Wilke, 2004. "The German Public Pension System: How it Was, How it Will Be," NBER Working Papers 10525, National Bureau of Economic Research, Inc.
    4. Jonathan Gruber & David A. Wise, 2004. "Social Security Programs and Retirement around the World: Micro-Estimation," NBER Books, National Bureau of Economic Research, Inc, number grub04-1, March.
    5. Axel H. Börsch-Supan & Christina B. Wilke, 2003. "The German Public Pension System: How it Was, How it Will Be," Working Papers wp041, University of Michigan, Michigan Retirement Research Center.
    6. Axel Borsch-Supan & Reinhold Schnabel, 1999. "Social Security and Retirement in Germany," NBER Chapters, in: Social Security and Retirement around the World, pages 135-180, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Hayo, Bernd & Ono, Hiroyuki, 2010. "Comparing public attitudes toward providing for the livelihood of the elderly in two aging societies: Germany and Japan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 72-80, January.

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