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Pension reform: model calculations on long-term effects

Author

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  • Martin Werding

Abstract

On the basis of the CESifo pension model, this article shows the differing effects of some variants of pension law. The reform laws of 1992, 1999 and 2000 were examined as well as the Ifo recommendations on pension reform published in ifo Schnelldienst 18/2000. In examining the politically implemented or planned reforms, the most sustainable impact on the development of pension contributions and the level of pension benefits are found in the "Riester reforms". According to calculations by the Ifo Institute, even this variant will not be able to maintain a pension contribution rate of 22%, but will reach the 23% mark already in 2030 and 24% in 2035.

Suggested Citation

  • Martin Werding, 2000. "Pension reform: model calculations on long-term effects," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(28), pages 39-42, November.
    • Handle: RePEc:ces:ifosdt:v:53:y:2000:i:28:p:39-42
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    Citations

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    Cited by:

    1. Christoph Borgmann & Matthias Heidler, 2003. "Demographics and Volatile Social Security Wealth: Political Risks of Benefit Rule Changes in Germany," CESifo Working Paper Series 1021, CESifo.
    2. Jakob von Weizsäcker & Martin Werding, 2002. "Demography feast: Pensions and life expectancy," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(11), pages 42-45, June.
    3. Buttler, Günter & Klein, Ingo, 2000. "Reform der Gesetzlichen Rentenversicherung durch die Einführung einer Zusatzrente auf Kapitalbasis: Ergebnisse von Modellrechnungen bis zum Jahr 2045," Discussion Papers 35/2000, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Statistics and Econometrics.

    More about this item

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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