Should Pensions Be Progressive? Yes, at Least in Germany!

The German Labour Market

“…The legal retirement age is progressively increased to age 67 but early retirement is possible from age 63 with 35 years of contributions with reduced benefits and from age 65 without deductions after 45 years of contributions. A 6% increment for each year of additional work is provided after the age of 67. than 21 of the other OECD countries (OECD, 2011b) and studies suggest that introducing progressivity may have a positive impact on welfare by reducing the risk of old-age poverty (Fehr et al, 2011). The impact of this measure on public finances should be carefully examined to avoid undermining the sustainability of the pension system.…”

Hosszú távú munkakínálat, tőkekínálat és makrogazdasági hatásaik

“…Hasonló indíttatású tanulmányában a német nyugdíjrendszert vizsgálvaFehr, Kallweit, Kindermann [2011] azt mutatja ki, hogy hatékonysági szempontból nem optimális, ha a nyugdíjrendszerben felhalmozott pontok tökéletesen tükrözik a relatív jövedelmeket.…”