Impact of recent pension reforms on old-age poverty

Current Project

Project Management

Peter Haan

Project Period

July 14 - October 2, 2020

Commissioned by

The German Council of Economic Experts

The report looks at the following pension reforms:

The “mother's pension” (Mütterrente I and II), which extends benefits for child-rearing periods for births prior to 1992 by two and a half years per child (one additional earnings point from the mother's pension I and a further 0.5 earnings points from the mother's pension II).

The basic pension (Grundrente). The aim is to consider how the revaluation of low insurance premiums for long-term insured persons in the statutory pension insurance affects poverty in old age. In the microsimulation model, the law on basic pension is to be contrasted and compared with a scenario without a basic pension.

The expertise uses a tax transfer simulation model to analyze the effects of the reforms with regard to mother’s pensions and basic pensions on old-age poverty, operationalized as poverty risk and basic income support (entitlement quota). The reforms are considered separately so that the respective effect on the target values can be presented in a differentiated manner.

DIW Team

Contact

Peter Haan

Head of Department in the Public Economics Department