Beliefs about demographic change: How well are individuals informed?

Demographic change is one of Germany's most pressing social and economic challenges. Using data from a representative telephone survey, we analyze how well informed respondents are about the magnitude of demographic change and what factors influence the accuracy of their beliefs. We find that respondents tend to overestimate the old-age dependency ratio when considering the current and long-term demographic situation separately. However, their beliefs regarding the change of the old-age dependency ratios over the considered period are not far from the projected change. A better understanding of the German statutory pension insurance plays an important role for more accurate beliefs.