Recent reforms that aim at reducing the upcoming burdens of population ageing might seriously harm low income individuals. An increase in old-age poverty and disability will be the result. Under this prospect, the present paper quantitatively characterizes the optimal progressivity of unfunded...

The state of the current German pension system is highly alarming. The aging society coupled with the prospect of increasing longevity is causing dramatic fiscal strains to the pay-as-you-go (PAYG) financed statutory pension scheme. In order to keep the current benefit level for future retirees,...

Like in many other OECD countries, the population will age rapidly in Germany during the next decades. This undermines the future sustainability of the current unfunded public pension system and motivates the search for reform options. The present paper aimes to evaluate some currently discussed...