July 2024

Elderly Germans Face Rising Poverty Threat

Germany is facing a growing concern over the rising number of elderly citizens living in poverty. Recent investigative reports indicate that a staggering 3.2 million pensioners in the country are at risk of economic hardship, a situation worsened by stagnant wages and insufficient pension benefits. As mentioned in reports from the public broadcaster ARD, nearly one in five, or approximately 18.7%, of Germany's pensioners were classified as being at risk of poverty as of 2017. This alarming statistic highlights...

June 2024

German Allianz to invest in China’s mega pension company with 2% stake

 Allianz Global Investors (AGI), one of the investment arms of German insurer Allianz, has become the first foreign company to own a stake in China's pension insurance giant Guomin Pension. AGI was allowed to subscribe to newly issued shares representing 2% in the company, and the stake is worth 228 million yuan ($31.40 million), the pension firm said in a statement issued Monday. Guomin Pension, jointly launched by China's largest banks and insurers, was established in 2022 to promote the development...

May 2024

Live Longer and Healthier: Impact of Pension Income for Low-Income Retirees

By Chiara Malavasi & Han Ye We estimate the effect of additional pension income on mortality outcomes by exploring the eli- gibility criteria of a German program subsidizing the pensions of low-wage workers. Using novel administrative data, we find that eligibility leads to a 2-month delay in age at death (censored at 75). Survey evidence suggests that additional pension income improves both mental and physical health. In addition, individuals feel less financially constrained and are more optimistic about their future....

Germany poised for stagnation with ageing population, warns IMF

The eurozone’s largest economy is heading for stagnation amid a period of rapid population ageing that will place intense strain on the state and public finances, the International Monetary Fund has warned. In a snapshot of the German economy, the fund said economic growth would slow markedly due to the generation of baby boomers born between 1946 and 1964retiring and the recent waves of immigration, which have hitherto replenished the labour force, subsiding. The Washington-based organisation, which has 190 member countries,...

April 2024

Germany to hike pensions nationwide by 4.57%

The more than 21 million pensioners in Germany would receive a substantial 4.57 percent pension increase beginning on July 1, after the German Cabinet approved the adjustment in Berlin. With this increase, pensions are set to rise faster than inflation in the country. The last time pensions rose faster than inflation was in 2000. The increase is larger than originally predicted, which the Labour Minister Hubertus Heil, credited to strong wage growth in Germany. In the autumn, estimates had predicted an increase of...

Wealth Creators or Inheritors? Unpacking the Gender Wealth Gap from Bottom to Top and Young to Old

By Eva Sierminska, Charlotte Bartels & Carsten Schroeder There is growing interest in understanding how gender influences the accumulation of wealth. While prior studies have focused on labor-related determinants, our research focuses on inheritances and gifts. Using unique data that over samples the top 1% of wealth holders in Germany, we show that the gender wealth gap is small for individuals up to age 40, then widens, and declines for those past retirement age. Transfer amounts and their timing are...

February 2024

Fewer Germans opting for early retirement, figures show

More and more people in Germany are working between the ages of 63 and 67, government figures show, reported dpa news. The standard pensionable age for those born after 1964 is 67. Early retirement is possible starting at 63, with a reduction in benefits. The data show the number of people in the 63 to 67 age group who are still subject to social security contributions and at least marginally employed rose steadily from 1.31 million in 2020 to 1.67 million...

Gender Inequality Over the Life Cycle, Information Provision and Policy Preferences

By Alessandra Casarico, Jana Schuetz & Silke Uebelmesser We conduct a survey experiment with four thousand German respondents and provide information on two measures of gender inequality, separately or jointly: the gender gap in earnings and the gender gap in pensions. We analyze the effect of information provision on respondents’ views on the importance of reducing gender inequality and on their agreement with the adoption of policies targeted at different stages of the life cycle and aimed at reducing the...

November 2023

German government to make pension funds join dashboard

The German government is preparing an ordinance to make pension funds exchange data with the pension dashboard – Digitale Rentenübersicht – by the end of next year, said Imke Petersen, head of the Zentralen Stelle für die Digitale Rentenübersicht (ZfDR), the unit within the first pillar manager Deutsche Rentenversicherung responsible for designing the platform. “On 31 December 2024 all pension funds will have not only to be registered with us, but also will be able to deliver [data],” Petersen said,...

German government drafts law to reform second pillar pension system

The German government has drafted the law to reform the second pillar occupational pension system, Rolf Schmachtenberg, state secretary for the Labour and Social Affairs Ministry, announced during the Handelsblatt conference on occupational pensions yesterday. The 24-point draft law – called Betriebsrentenstärkungsgesetz 2024 – deals with the difficult topic of opening up the social partner model to third parties not bound by collective bargaining agreements, the state secretary said, adding that the ministry is examining the legal aspects of such change...