Zur Rentenproblematik: Lösungswege und Reformvorschläge

2001 ◽  
Vol 50 (2) ◽  
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Married Couples ◽  
Developed Countries ◽  
Pension Scheme ◽  
National Account ◽  
Demographic Development ◽  
Long Run ◽  
The Future ◽  
Uniform Taxation

AbstractThis economic policy forum is assigned to the problems of pensions. Eckart Bomsdorf remarks that the pension scheme system in Germany will be stretched to its limit in the future. Like in many other highly developed countries, the reason for this is the demographic development. The number of people who receive pensions is increasing, while the number of contributors is stagnating or even decreasing. The latest pension reforms try to counteract this development. They will work until 2010, after this, however, these measures will not be sufficient to secure Germany’s pension system. Some additional measures can make the statutory pension system in Germany fit for the future. Increasing the retirement age and a new pension formula, which takes the demographic development into consideration sufficiently, are of particular importance.In his contribution, Axel Börsch-Supan states that after the Pension Reform 2000 has successfully passed both chambers of the German parliament, the German pension system still rests mainly on an expanding pay-as-you-go financing mechanism. He argues that the long-run stabilization of the German pension system will need further reform steps with three main elements: (1) A reformed pay-as-you-go pillar which is actuarially fair, features a transparent national account set-up, and freezes contribution rates; (2) A deeper second funded pillar which is based on US 401(k)-style grouped accounts that finances the impending aging burden; (3) An internally consistent regulatory framework for the German capital market including uniform taxation of all retirement savings according to the EET principle.The topics of Friedrich Breyers contribution are often neglected elements of the pension reform: dependents relief and pension splitting within the social security system. The reform introduces the choice of splitting, where each spouse receives half of the total pension claims, which both have acquired during the marriage. The author asks whether the method of income tax splitting should be applied to the health insurance as well as the pension system in order to strengthen the equivalence principle. It is shown that only with mandatory splitting in the pension system the preferential treatment of married couples as opposed to singles would be eliminated.

scholarly journals Challenges and Sustainability of China’s Socio-Economic Stability in the Context of Its Demographic Development

Societies ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 22
Author(s):  
Andrea Čajková ◽  
Peter Čajka
Keyword(s):  
Economic Development ◽  
Pension System ◽  
Population Policy ◽  
Developed Countries ◽  
Economic Stability ◽  
Demographic Development ◽  
Demographic Challenges ◽  
Family Behavior ◽  
Socio Economic Development ◽  
The Impact

Like many developed countries in the world, China currently faces many serious demographic challenges that pose a potential risk to the country’s socio-economic development and stability. The current demographic development and trend is characterized by a change in the reproductive behavior of the population, characterized by a decline in birth rates, a change in family behavior, and a shift in the value system. This paper is aimed at identifying the impact of population policy and the degree of its influence on both the economic and social system of the country. Based on a deterministic approach, the findings reveal and demonstrate the serious demographic challenges facing China, and we are noting that there is no guarantee that parametric adjustments, such as shifting the retirement age, will de facto ensure the financial health of the pension system by preventing bankruptcy. We point out the risks and prospects for the sustainability of China’s socio-economic development based on an analysis of past and current Chinese demographic policy.

Iceland's New Plan for Debt Relief: Jubilee or Waiting for Godot?

2014 ◽  
Vol 5 (4) ◽  
pp. 517-530
Author(s):  
Maria Elvira Méndez Pinedo
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Debt Relief ◽  
Economic Recovery ◽  
European Law ◽  
Future Scenario ◽  
The Public ◽  
Long Run ◽  
Waiting For Godot ◽  
Loan System

Despite Iceland's economic recovery, nearly 48% households continue to struggle to make ends meet. This study argues, first, that the main reason behind over-indebtedness in this country is a loan system without parallel in Europe, based on a triple cost of credit (fix/variable interest, indexation of credit to inflation and negative amortization). Second, the problem is examined in the context of European law as some alleged malpractices of indexation have been referred to the EFTA Court. Third, the focus shifts to the debt-relief programme presented by the Icelandic government in 2013/2014 after the relative failure of previous debt-relief measures. It is argued that this plan will fail in the long run as long as the indexation of credit to inflation is not abolished. The private pension system in Iceland relies indirectly on indexed mortgage credit issued by the public Housing Financing Fund. Since a ban on indexation and a holistic pension reform are not expected soon, all present debt write off benefits will surely be eaten up by higher inflation. As long as indexation of credit is legal, the future scenario resembles less a debt-relief jubilee and more the theater play “Waiting for Godot ”.

Private Pension Funds in Hungary

2005 ◽  
Vol 55 (3) ◽  
pp. 287-315 ◽  
Author(s):  
Ichiro Iwasaki ◽  
Kazuko Sato
Keyword(s):  
Trade Unions ◽  
Pension System ◽  
Pension Reform ◽  
Legal Framework ◽  
Pension Funds ◽  
Negative Influence ◽  
Private Pension ◽  
Pension Scheme ◽  
Special Interest Groups ◽  
Governance Reform

The new pension system launched in Hungary in 1998 is epoch-making for having introduced a mandatory private pension scheme (MPPS). However, the political decision-making on pension reform and the scheme operations have been greatly influenced by conflicts of interests among ministries, political conflicts between parties, and the presence of special interest groups, including trade unions and financial institutions. This situation may have had a certain negative influence on the legal framework of the MPPS and on the management performance of private pension funds. In order for the MPPS to be sustainable in the future and to make insurance beneficiary profits a top priority, the corporate governance reform of pension funds and reinforcement of the monitoring system over them, and political neutralisation of the public pension system are necessary.

Debate on Rationality and Legitimacy of “House-for-Pension” Pension Model Use in People’s Republic of China

10.12737/6732 ◽  
2014 ◽  
Vol 2 (6) ◽  
pp. 36-39 ◽  
Author(s):  
C Вэйдун ◽  
Cyuy Veydun ◽  
Хунтин ◽  
Yan Hongting
Keyword(s):  
Pension System ◽  
People’S Republic Of China ◽  
Pension Scheme ◽  
Chinese Society ◽  
People's Republic Of China ◽  
Similar Model ◽  
Reverse Mortgage ◽  
Republic Of China ◽  
Budget Support ◽  
The Future

“House-for-pension” scheme also known as reverse mortgage is used in many countries nowadays. An interest to this model is increasing in Chinese society too. But is “house-for-pension” scheme really suitable for China? In the present paper possible options related to "house for pension" scheme adaptation to the Chinese conditions have been analyzed, and a conclusion that the similar model doesn´t suit China has been drawn. Chinese pension system still needs for state budget support as a main source of financing, and for using of traditional pension provision. “House-for-pension” scheme will be able become a supplement source of financing only in the future.

scholarly journals Pensions, Ageing and Social Security Research: Literature Review and Global Trends

Mathematics ◽  
2021 ◽  
Vol 9 (24) ◽  
pp. 3258
Author(s):  
María del Carmen Valls Valls Martínez ◽  
José Manuel Santos-Jaén ◽  
Fahim-ul Amin ◽  
Pedro Antonio Martín-Cervantes
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Developed Countries ◽  
Subject Area ◽  
Research Literature ◽  
Pension Insurance ◽  
Global Trends ◽  
The United Kingdom ◽  
Security Research ◽  
The Usa

Pension systems are one of the fundamental pillars of the welfare state. The ageing of the population caused by longer life expectancy and low birth rates has led to a crisis in the public pension system in developed countries. Changes for the system’s sustainability are necessary, and the scientific literature on the subject is abundant, especially in recent years. This article aims to carry out a bibliometric analysis of the research carried out to date, highlighting, in turn, future lines of research. The study was carried out on a total of 1287 articles published from 1936 to 2021 and found in the Scopus database. The SciMAT, VOSviewer, and Datawrapper tools were used to analyse the most important articles, authors, countries, and institutions by volume of production and citations, as well as the relationships between them. Likewise, the most important keywords and their evolution over time were highlighted, obtaining the main focus of the research. In addition to the general analysis, a specific study was carried out in the area of Mathematics. The results show that the leading countries are the United Kingdom, the USA, and the Netherlands. On the other hand, the lead subject area in which these articles have been published is Economics, Econometrics, and Finance. The research trends are sustainability, pension reform related to ageing, and pension insurance.

scholarly journals Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements

2020 ◽  
pp. 1-27
Author(s):  
Jorge M. Bravo ◽  
Jose A. Herce
Keyword(s):  
Labour Market ◽  
Pension System ◽  
Frailty Model ◽  
Pension Scheme ◽  
Long Run ◽  
Unemployment Spells ◽  
Stochastic Mortality Model ◽  
The Impact ◽  
Scarring Effects ◽  
Pension Wealth

Abstract Unemployment periods and other career breaks have long-term scarring effects on future labour market possibilities, permanently affecting workers' retirement income and standard of living as pensioners. Previous literature has focused on the impact of job loss on working careers with little attention to its impact on pension wealth, particularly the extent to which longevity heterogeneity amplifies unemployment scars. This paper investigates the effect of single and multiple unemployment spells on the lifetime pension entitlements of earnings-related contributory pension schemes, considering the timing and duration of breaks, alternative lifecycle labour earnings profiles, scarring and restoration effects on labour market re-entry, the existence of pension credits and pension accruals for periods spent outside the labour market, longevity heterogeneity, and the accumulation and decumulation redistributive features of the pension scheme. Pension entitlements are estimated using a backward-looking simulation approach based on the actual Portuguese public pension system rules and stylized labour market profiles identified in the SHARE Job Episodes Panel data using a sequence analysis. Longevity heterogeneity is modelled using a stochastic mortality model with a frailty model. Our results show that the timing and duration of unemployment periods is critical, that scarring effects amplify pension wealth losses, that minimum pension provisions, pension credits and pension scheme redistributive features can partially mitigate the impact of unemployment periods on future entitlements, and that the presence of positive correlation between lifetime income and longevity career breaks can amplify the asymmetry in the distribution of pension entitlements across income groups.

Zum Problem der Generationengerechtigkeit in den Sozialversicherungen

2003 ◽  
Vol 52 (2) ◽  
Author(s):  
Martin Werding ◽  
Hans D. Barbier ◽  
Axel Börsch-Supan
Keyword(s):  
Capital Investment ◽  
Pension Reform ◽  
Current System ◽  
Public Pension ◽  
Equal Treatment ◽  
Pension Scheme ◽  
Demographic Development ◽  
Demographic Ageing ◽  
Number Of Children ◽  
Starting Point

AbstractIn his paper Martin Werding proposes “Public pension entitlements according to the number of children: arguments for an unpopular idea”. Proposals to curtail public pension entitlements for those who have no children, thus shifting the burden involved in pension reform that is necessitated by demographic ageing mainly to this sub-group of insured individuals, are provoking heated debates. Nonetheless, the idea is defended here arguing that unfunded public pensions are essentially based on aggregate human capital investment in which the childless are less engaged than those who have children. There is a role of childless individuals in co-financing child-related benefits and public education, which can give rise to pension entitlements for these people as well, but the current system in Germany is far away from balancing the relevant financial burdens and claims on the return to expenditure on children across the population. There are thus good reasons to reflect the current asymmetries within an alternative benefit formula for the German public pension scheme.In his article Hans D. Barbier comments the debate on the consolidation of pension funds’ finances. It is wrong to claim that the old-age pensions are safe. One of the risk factors is the demographic development: this shows the problem of a fictional inter-generation compact. But there are grave arguments against an economic punishment of childlessness, e. g. against the simplified formula to shorten the retirement pensions of people without children by half.In his article Axel Börsch-Supan discusses the impossibility of defining a practical concept of “justice between generations”. He argues that the concept - understood as an equal treatment of generations - is ill-definded and lacks practical applicability because it is impossible to unravel the historical starting point of each generations life course in a world characterized by non-stationarity and sudden events such as wars, economic crises, baby booms and baby busts.

scholarly journals Impact Of Retirement Benefit Act (RBA) On Investment Returns To Pension Funds In Kenya

2010 ◽  
Vol 9 (4) ◽  
Author(s):  
Lucy Jepchoge Rono ◽  
Julius Kibet Bitok ◽  
Gordon N Asamoah
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Pension Funds ◽  
Insurance Fund ◽  
Retirement Benefits ◽  
Fund Managers ◽  
Long Run ◽  
Investment Returns ◽  
Mean Differences ◽  
The Impact

This study focused on the analysis of the impact of RBA guidelines on the return on investments of both pension funds under management and those for pension schemes. A random sample of 175 fund trustees and a census of 13 fund managers from registered fund management companies participated in the survey. The questionnaire was administered through the drop-and-pick method. Data were analyzed using SPSS (Statistical Package for Social Sciences) and summarized in descriptive statistics, such as mean, standard deviation, frequencies, percentages, and t-tests for mean differences were used. The study determined that annual investment return for retirement benefits schemes in the past three years ranged between 10 and 27.52%, sometimes falling below the annual inflation.  The Kenya pension funds are in compliance with the prescribed broad guidelines with regard to maximum percentages of total asset value of fund by the RBA Act. They are, however, moderately in compliance with the regulations requiring that that they maintain an actuarial solvency of 80% and above. The overall weighted returns before the implementation of RBA Guidelines was low (average scale of 1.9) while the weighted returns after the implementation of RBA Guidelines was high, at an average scale of 3.7. An analysis of the trend, however, showed that long-run performance has slowed down. The highest growth was realized for mortgage and cash returns as opposed to rights issues and bonus shares. There is need to fashion out the appropriate mix of reforms suitable for Kenya that will ensure the long-run sustainability of its pension systems. The challenge is for the country to adopt a unified, harmonized, and transparent regulatory framework that will integrate the pension system in order to ensure sustainability in its financing and mobilizing of adequate funds to cater for the ever-increasing population of beneficiaries in this regard, comprehensive pension reform policy with wider target radar and one that will consolidate and harmonize the various legislations touching on retirement benefits industry in line with Retirement Benefits Act. The Regulator needs to implement measures to ensure pension funds are insulated from inflationary and other risks.  An effective way is to institute a pension risk insurance fund that will underwrite and compensate such losses as will be prescribed. Further, there is need for a systematic indexation of benefits to inflation. RBA should strengthen its compliance and enforcement function in order to ensure that it appropriately deals with emerging present and future regulatory challenges.

Irish Citizens’ Attitudes to Pension Reform and Redistribution

2013 ◽  
Vol 13 (2) ◽  
pp. 203-220 ◽  
Author(s):  
Yosr Abid ◽  
Cathal O'Donoghue
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Adult Population ◽  
Stated Preferences ◽  
Public Pension ◽  
Pension Scheme ◽  
State Pension ◽  
Pension Benefits ◽  
Citizens Attitudes ◽  
Selection Of

In order to assess people's preferences regarding potential reforms of the Irish state pension system, we surveyed a sample of the Irish adult population about their opinion on a selection of measures and issues related to the redistributive principles and parameters of the pension scheme. Even though very few people are well informed about the pension system, we observe a kind of homogeneity regarding perceptions about the way public pension benefits should be provided. As far as we know, this article represents the first attempt to elicit people's preferences for reforming the state Irish pension system using stated preferences techniques.

scholarly journals Fiscal effects of the Norwegian pension reform – A micro–macro assessment

2017 ◽  
Vol 18 (1) ◽  
pp. 88-123 ◽  
Author(s):  
DENNIS FREDRIKSEN ◽  
ERLING HOLMØY ◽  
BIRGER STRØM ◽  
NILS MARTIN STØLEN
Keyword(s):  
Labour Supply ◽  
Pension System ◽  
Pension Reform ◽  
Fiscal Sustainability ◽  
Microsimulation Model ◽  
Fiscal Impact ◽  
Cge Modelling ◽  
Long Run ◽  
Norwegian Population

AbstractThe main goal of the Norwegian pension reform of 2011 is to improve long run fiscal sustainability, not least through stronger labour supply incentives. We assess to what extent the reform is likely to live up to these intentions. To this end we combine a dynamic microsimulation model, which includes a complete description of the Norwegian population and the pension system, with CGE-modelling of the effects on all government revenues and expenditures. We find that the reform is likely to make a great fiscal impact in the long run, and higher employment plays an important role in this respect.

Sign in / Sign up

Export Citation Format

Share Document