From Basic Pension to Life Expectancy Factor
Abstract German public pension policy has always been torn between popular service expansions and the need for fiscal consolidation. Based on the methodology of generational accounting, this work determines long-term fiscal effects of two exemplary expansive measures and introduces a measure aiming...
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| Format: | Article |
| Language: | deu |
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Sciendo
2020-10-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-020-2762-8 |
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| _version_ | 1832572296542289920 |
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| author | Bernd Raffelhüschen Stefan Seuffert |
| author_facet | Bernd Raffelhüschen Stefan Seuffert |
| author_sort | Bernd Raffelhüschen |
| collection | DOAJ |
| description | Abstract German public pension policy has always been torn between popular service expansions and the need for fiscal consolidation. Based on the methodology of generational accounting, this work determines long-term fiscal effects of two exemplary expansive measures and introduces a measure aiming towards increased fiscal sustainability. The two measures consist of the recently introduced distortionary early retirement scheme at age 63 as well as the introduction of the supplementary basic pension scheme. Both measures increase the sustainability gap by 10% of GDP and will oppose the fundamental principles of the German social policy system. The authors introduce a dynamic life expectancy factor for automatic adjustment of the statutory retirement which could potentially reduce the pension system’s sustainability gap by half of the initial magnitude. |
| format | Article |
| id | doaj-art-ae9f14097d6646888482e2b704da64b9 |
| institution | Kabale University |
| issn | 0043-6275 1613-978X |
| language | deu |
| publishDate | 2020-10-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Wirtschaftsdienst |
| spelling | doaj-art-ae9f14097d6646888482e2b704da64b92025-02-02T11:10:21ZdeuSciendoWirtschaftsdienst0043-62751613-978X2020-10-011001077478110.1007/s10273-020-2762-8From Basic Pension to Life Expectancy FactorBernd Raffelhüschen0Stefan Seuffert1Institut für Finanzwissenschaft u. Sozialpolitik, Albert-Ludwigs-Universität FreiburgInstitut für Finanzwissenschaft u. Sozialpolitik, Albert-Ludwigs-Universität FreiburgAbstract German public pension policy has always been torn between popular service expansions and the need for fiscal consolidation. Based on the methodology of generational accounting, this work determines long-term fiscal effects of two exemplary expansive measures and introduces a measure aiming towards increased fiscal sustainability. The two measures consist of the recently introduced distortionary early retirement scheme at age 63 as well as the introduction of the supplementary basic pension scheme. Both measures increase the sustainability gap by 10% of GDP and will oppose the fundamental principles of the German social policy system. The authors introduce a dynamic life expectancy factor for automatic adjustment of the statutory retirement which could potentially reduce the pension system’s sustainability gap by half of the initial magnitude.https://doi.org/10.1007/s10273-020-2762-8 |
| spellingShingle | Bernd Raffelhüschen Stefan Seuffert From Basic Pension to Life Expectancy Factor Wirtschaftsdienst |
| title | From Basic Pension to Life Expectancy Factor |
| title_full | From Basic Pension to Life Expectancy Factor |
| title_fullStr | From Basic Pension to Life Expectancy Factor |
| title_full_unstemmed | From Basic Pension to Life Expectancy Factor |
| title_short | From Basic Pension to Life Expectancy Factor |
| title_sort | from basic pension to life expectancy factor |
| url | https://doi.org/10.1007/s10273-020-2762-8 |
| work_keys_str_mv | AT berndraffelhuschen frombasicpensiontolifeexpectancyfactor AT stefanseuffert frombasicpensiontolifeexpectancyfactor |