Open AccessHow the German Pension System can benefit from insights of behavioural economics
Author(s) -
Oliver Koch
Publication year - 2021
Publication title -
studenckie prace prawnicze, administratywistyczne i ekonomiczne
Language(s) - English
Resource type - Journals
ISSN - 1733-5779
DOI - 10.19195/1733-5779.34.11
Subject(s) - pension , german , pillar , statutory law , life expectancy , pension system , order (exchange) , economics , pension insurance , actuarial science , business , economic policy , labour economics , finance , political science , population , law , geography , engineering , sociology , demography , structural engineering , archaeology
Due to the demographic change that has been going on for several decades, the pension system in Germany is being heavily burdened. The German pension system can be described as a three-pillar system that includes not only the compulsory statutory pension insurance, but also the company pension schemes and the private pension schemes. However, the statutory pension insurance is particularly affected by the demographic crisis. The resulting declining birth rates and the rising life expectancy caused an unfavorable ratio between contributors and recipients of this system. Several pension reforms have already been introduced in Germany in order to manage this crisis, but the expected results did not occur. This article is therefore concerned with the findings of behavioral economics and what solutions it gives for this problem. In addition, a reform concept for Germany with behavioral economic elements is presented — “Deutschlandrente”.