09/2023 – Pension Planning

The German pension system is facing major challenges. Demographic change, which is increasingly skewing the ratio of contributors to pensioners, is creating ever greater pressure for reform. The baby boomer generation is retiring. At the same time, too few young people are entering the workforce to sustain pay-as-you-go pensions. The transformation of pensions is frequently discussed, but substantial adjustments have not yet been implemented.
 
With its focus on “Pension Planning”, the ZEW Monthly September 2023 takes a closer look at the possible solutions for stabilising pensions. ZEW researchers are currently investigating the role that private pension provision can play in closing potential pension gaps. The team examines the consequences of the COVID-19 pandemic and price increases on retirement provision, identifying a change in savings behaviour among women, and highlighting the merits of fluctuating payout plans.