CEU Electronic Theses and Dissertations, 2018
| Author | Schenk, Matthias |
|---|---|
| Title | Policy Implications for the German Pension System under the Consideration of Low Interest Rates and Demographic Change |
| Summary | Because of the progressive ageing of Germanys society, the German retirement system has already been put under significant pressure and this development is likely going to continue. Therefore, eventually the pension system reform will become inevitable. Comprehensive pension system reform has always been associated with protracted and lengthy challenges. Due to its general notion and the fact that almost the entire society is either directly or indirectly affected, many different hurdles as well as political and institutional constraints have to be overcome. Previous pension system reforms in Germany can be characterised as a rather gradual transformation without a complete overthrow of the existing status quo. Although, it is tempting to think about large-scale reform proposals, the actual feasibility of each reform proposal must be noted. Adjusting the legal retirement age towards the prospective life expectancy in combination with an expansion of child related pension benefits and improved financial literacy, hold the potential to offset the negative externalities that result from the progressive ageing of the society. However, these suggestions face extensive constraints regarding their actual viability. At present, current pension policies in Germany must be characterised as mostly adhering to the status quo, providing little room for innovation and even reversing previously enacted improvements. Furthermore, a general lack of political willingness to reform can be identified. In combination with the ever growing political influence of pensioners, comprehensive pension system reform is much need in Germany however, not very likely at the moment. |
| Supervisor | Bokros, Lajos; Smith, Martin |
| Department | School of Public Policy MA |
| Full text | https://www.etd.ceu.edu/2018/schenk_matthias.pdf |
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