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Between Beveridge and Bismarck: Preferences for redistribution through public pensions

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  • Breyer, Friedrich
  • Breunig, Christian
  • Kapteina, Mark
  • Schwerdt, Guido
  • Sterba, Maj-Britt

Abstract

We examine preferences for redistribution in Germany’s public pension system as well as notions of fairness of the system, using survey and experimental data from citizens and politicians. Our findings reveal a widespread rejection of strict proportionality between contributions and benefits, with strong support for greater redistribution to low earners. Information on inequalities in life expectancy reduces perceived fairness and increases support for redistribution among voters and politically moderate legislators. The study also reveals significant knowledge gaps about the basic features of the existing pension scheme among citizens. We demonstrate that policy-relevant information influences fairness perceptions.

Suggested Citation

  • Breyer, Friedrich & Breunig, Christian & Kapteina, Mark & Schwerdt, Guido & Sterba, Maj-Britt, 2025. "Between Beveridge and Bismarck: Preferences for redistribution through public pensions," The Journal of the Economics of Ageing, Elsevier, vol. 31(C).
    • Handle: RePEc:eee:joecag:v:31:y:2025:i:c:s2212828x25000258
    DOI: 10.1016/j.jeoa.2025.100570
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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