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Der Rentengewinn der Generation enkellos

It is well known that low fertility rates today will lead to lower pay-as-you-go pensions in the future. What is less well known is that lower fertility today increases today‘s pensions since people without children work more and therefore pay higher pension contributions. Jakob von Weizsäcker and Robert Fenge (ifo Institut) estimate that this effect […]

By: Date: April 18, 2006 Topic: Global economy and trade

It is well known that low fertility rates today will lead to lower pay-as-you-go pensions in the future. What is less well known is that lower fertility today increases today‘s pensions since people without children work more and therefore pay higher pension contributions. Jakob von Weizsäcker and Robert Fenge (ifo Institut) estimate that this effect boosts German public pensions by 6 percent. Since this windfall was unexpected and unintended, they propose to eliminate it and transfer the funds to young families with children instead. This article is based on an original paper "Generation Enkellos und Rentenbeitragsrabatt für Eltern".

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