Vor allem unter Geringverdienern ist die betriebliche Altersversorgung nur unterdurchschnittlich verbreitet. Mit dem zum 01.01.2018 in Kraft getretenen Betriebsrentenstärkungsgesetz und insbesondere dem sogenannten BAV-Förderbetrag (§ 100 EStG) versucht der Gesetzgeber daher, diese...

In the wake of the global pandemic known as COVID-19, retirees, along with those hoping to retire someday, have been shocked into a new awareness of the need for better risk management tools to handle longevity and aging. This paper offers an assessment of the status quo prior to the spread of...

We analyse the pattern of work and other labour market states, such as unemployment and out-of-labour-force, over the life course, by making use of a long retrospective panel of older Europeans. Based on stochastic simulations of a reduced form transition probability model, we document to what...

Reducing the eligibility age for pension benefits is considered by many as a policy that will discourage labor supply by mature workers. This paper analyzes a recent Norwegian pension reform which effectively lowered the eligibility age of retirement from 67 to 62 for a group of workers. For the...

Vor allem unter Geringverdienern ist die betriebliche Altersversorgung nur unterdurchschnittlich verbreitet. Mit dem zum 01.01.2018 in Kraft getretenen Betriebsrentenstärkungsgesetz und insbesondere dem sogenannten BAV-Förderbetrag (§ 100 EStG) versucht der Gesetzgeber daher, diese...

Recent years have seen increasing concerns in many developed countries over 'the changing nature of work'. For example, in the United Kingdom, the Taylor Review notes that only 60% of workers are permanent employees. In the United States, a recent review by Mas and Pallais (2020) found that...

In the wake of the global pandemic known as COVID-19, retirees, along with those hoping to retire someday, have been shocked into a new awareness of the need for better risk management tools to handle longevity and aging. This paper offers an assessment of the status quo prior to the spread of...

Several European countries are currently considering reversing parts of their pension reforms that were adopted previously to improve sustainability. In this paper we present a framework that allows us to quantify the macroeconomic and fiscal costs of such reversals. We thereby integrate the...

Many countries all over the world have been facing the problem of deteriorating demographics, forcing reforms of the pension system model as well as its main parameters. An important perspective of the assessment of the financial sustainability of a pension system is the division of current GDP...

The aim of this chapter is to review the main instruments and indicators used to measure the sustainability of PAYG pension systems. It will distinguish between defined contribution and defined benefit systems, due to the various implications that each of them has. It will also be necessary to...

Retirement systems across the world are undergoing major reforms to adapt to continuously changing economic and demographic factors. Among these major changes are the so-called notional defined contribution pension schemes (NDCs), first developed about 20 years ago in countries such as Italy,...

In pay-as-you go pension systems, automatic balancing mechanisms (ABMs) are designed to face adverse demographic and economic changes. In this respect, ABMs can be defined as a set of pre-determined measures established by law to be applied immediately as required according to an indicator that...

This chapter addresses the issue of the financial sustainability of public PAYG pension schemes. Criticalities and, in particular, demographic risks affecting those schemes have been analysed. A possible solution to reduce demographic risk impact is presented, that is the introduction of a...

Initial public pensions are indexed to the economy-wide average wages, but pensions in progress are indexed to prices, average wages or their combinations - varying across countries and periods. We create a simple overlapping cohorts framework to study the properties of indexing pensions in...

We provide empirical evidence that the removal of work disincentives embedded in retirement earnings tests can increase old-age labor supply considerably, but it does so at the cost of more income inequality. Causal effects are identified based on a reform of the Norwegian early retirement...

This paper shows that increasing the normal retirement age and introducing pension deductions for retirement before normal retirement age in Germany did not prolong employment of older men. The reason for this surprising result is that employers encouraged their employees to use the bridge...

We show that people exposed to greater pension risk are less likely to invest in risky assets. We exploit a reform that links people's future pension benefits to their pension funds' funding ratio - a measure of the fund's financial health-making funding ratios a fund-specific measure of pension...

We analyze the political stability of capital funded social security. In particular, using a stylized theoretical framework we study the mechanisms behind governments capturing pension assets in order to lower current taxes. This is followed by an analysis of the analogous mechanisms in a...

We assess the long-run growth effects of rising longevity and increasing the retirement age when growth is driven by purposeful research and development. In contrast to economies in which growth depends on learning-by-doing spillovers, raising the retirement age fosters economic growth. How...

This paper presents long term projections of the German pension system that are based on a general equilibrium model with overlapping generations (OLG). This framework takes into account the two way feedback of both micro and macroeconomic relationships, meaning that households, for example,...

To what extent a pension system can be judged fair given structural differences in life expectancy across socioeconomic groups is not straightforward and will depend on the exact design of the system and other social policies in place, and how these policies interact with the pension system.

A specific feature in the Finnish pension system is rule-based preparation for mortality change. The earned pension capital is adjusted to life expectancy and the lowest age limit of the flexible retirement age will be adapted so that the ratio of expected years in employment and retirement is...

Pension schemes have a significant influence on the saving and consumption decisions of households. Similarly, contributions to pension arrangements are substantial expenditures for national governments and also for corporations, depending on the prevailing pension system. Beyond this, pension...

We assess the long-run growth effects of rising longevity and increasing the retirement age when growth is driven by purposeful research and development. In contrast to economies in which growth depends on learning-by-doing spillovers, raising the retirement age fosters economic growth. How...

We address the question of whether the heterogeneity in savings is partly due to differences in pension wealth across individuals and across countries, using a European harmonised wealth survey (HFCS) combined with estimates of pension wealth (OECD). First, we find significant displacement...

This paper presents a life-cycle model with human capital investment during working life through training and provides a novel empirical test of human capital theory. We exploit a sizable pension reform across adjacent cohorts in a regression discontinuity setting and find that an increase in...

This thesis is a volume comprised of four independent chapters: The overarching topic of the thesis is pensions and fiscal sustainability. An overriding problematic throughout the different chapters is that of demographic ageing. This ageing process, in the form of higher longevity and lower...

Mit "IP Neu" wurden 2014 Neuregelungen im Bereich der Invaliditätspension (IP) umgesetzt. Zielsetzung ist die verstärkte Arbeitsmarktintegration von gesundheitlich beeinträchtigten Menschen. Dazu wurde die befristete Invaliditäts- bzw. Berufsunfähigkeitspension abgeschafft und stattdessen...

People underestimate long-term growth in savings because they linearise exponential growth - a phenomenon known as exponential growth bias (EGB). This bias has implications for multiple financial decisions, particularly those relating to pensions. We hypothesised that underestimation might be...

The aim of this study is to compare Lithuanian and Swedish pension systems from the point of view of their design and performance in order to elaborate reasonable recommendations to Lithuanian pension policy based on the best Swedish experience. Swedish income, premium and guaranteed old-age...

Providing a decent living standard and preventing old-age poverty are the two major challenges of pension insurance schemes. Replacement rates below the poverty line despite many years of contribution represent a major challenge for public pension schemes with respect to the systems "raison...

The ecological tax reform that Germany implemented between 1999 and 2003 increased energy tax rates-especially on gasoline and diesel. Today, the ecological tax hikes yield an annual revenue of around 20 billion euros or 0.6 percent of GDP. The money is used to finance a higher federal grant to...

This paper investigates how demographic change affects the financial sustainability of a defined benefit pay-as-you-go social security system in an environment with collective bargaining on the labor market. Temporary equilibrium analysis shows that the contribution rate decreases, if the...