Munich Center for the Economics of Aging
Max Planck Institute
for Social Law and Social Policy
Institutional Affiliation: Munich Center for the Economics of Aging, Max-Planck-Institute for Soc
NBER Working Papers and Publications
|April 2012||Riester Pensions in Germany: Design, Dynamics, Targetting Success and Crowding-In|
with Axel H. Börsch-Supan, Anette Reil-Held: w18014
Riester pensions are voluntary, but heavily subsidized private pension schemes in Germany. They were designed as a matching defined contribution scheme to fill the emerging "pension gap" that is being generated by the gradually declining generosity of the public pay-as-you-go pensions in response to population aging. This paper investigates how the uptake of the recently introduced "Riester pensions" depends on the state-provided saving incentives and how well the targeting to families and low-income households has worked in practice. It documents the costs of the scheme, and collects circumstantial evidence on displacement effects between saving for old-age provision and other purposes.
After a slow start and several design changes, Riester pension plans took off very quickly. While sa...
Published: Riester Pensions in Germany: Design, Dynamics, Targeting Success, and Crowding-In Authors/Editors: Axel Börsch-Supan, Michela Coppola and Anette Reil-Held Matching Contributions for Pensions Published: October 2012 Pages: 81 - 102 http://dx.doi.org/10.1596/9780821394922_CH04