Mercer | MMGPI 2016 Germany

Germany

Germany’s retirement income system comprises an earningsrelated pay-as-you-go system based on the number of pension points earned during an individual’s career; a means-tested safety net for low-income pensioners; and supplementary pension plans which are common amongst major employers. These plans typically adopt either a book reserving approach, with or without segregated assets, or an insured pensions approach.

The overall index value for the German system could be increased by:

  • ƒƒIncreasing the minimum pension for low-income pensioners
  • ƒƒIncreasing coverage of employees in occupational pension plans
  • ƒƒIncreasing the labour force participation rate at older ages as life expectancies rise
  • Improving the level of communication from pension arrangements to members

The German index value fell from 62.0 in 2015 to 59.0 in 2016 primarily due to a reduction in the net replacement rate.

  Kontaktieren Sie uns
Sie haben Fragen zum Thema oder wünschen ein weiterführendes Gespräch? Bitte füllen Sie das Kontaktformular aus. Wir melden uns zeitnah bei Ihnen.
*Erforderliche Angaben