September 2021
13Sep

Germany. Pensioners can expect significantly higher pensions

Pensioners in Germany can expect a significant increase in their pay next year, according to the pension insurance fund. "I assume that the missed increase will be made up for to a certain extent next year and that pensioners will get a decent plus in 2022," Gundula Roßbach, President of the German Pension Insurance Association, told the newspapers of the Funke Media Group."How much more it will be, we won't know until next spring, because we have to look...

September 13, 2021
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August 2021
19Aug

On The Investment Strategies in Occupational Pension Plans

By Frank Bosserhoff, An Chen, Nils Sørensen, Mitja Stadje Demographic changes increase the necessity to base the pension system more and more on the second and the third pillar, namely the occupational and private pension plans; this paper deals with Target Date Funds (TDFs), which are a typical investment opportunity for occupational pension planners. TDFs are usually identified with a decreasing fraction of wealth invested in equity (a so-called glide path) as retirement comes closer, i.e., wealth is invested more...

August 19, 2021
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July 2021
29Jul

Fair Pension Policies with Occupation-Specific Aging

By Volker Grossmann, Johannes Schünemann & Holger Strulik We discuss public pension systems in a multi-period overlapping generations model with gerontologically founded human aging and a special focus on occupation-specific morbidity and mortality. We examine how distinct replacement rates for white-collar and blue-collar workers and early retirement policies could be designed to provide a fair and aggregate welfare-enhancing public pension system. Calibrating the model to Germany, we find that a pension system that equalizes relative pension contributions and the relative...

July 29, 2021
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27Jul

Average German pension has risen 34 percent in 10 years

Average pensions in Germany have increased significantly over the past 10 years, RND reports, citing figures from the Deutsche Rentenversicherung. Accordingly, 10 years ago, newly-retired people who had contributed to social security for at least 35 years received an average of 962 euros per month. Most recently in 2020, someone entering retirement who had contributed for the same length of time received an average of 1.290 euros per month - 34 percent more than in 2010. In the western federal...

July 27, 2021
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16Jul

Public Pension Design and Household Retirement Decisions: A Comparison of the United States and Germany

By David Knapp, Jinkook Lee, Maciej Lis and Drystan Phillips Social Security provides retirement benefits to age-eligible workers and their spouses. Benefits are permanently increased if initial receipt is delayed. For benefits paid to spouses, these incentives reflect a complex interaction of the worker’s and spouse’s earnings histories, benefit claiming decisions, and age difference. We demonstrate that the benefit increment from delaying initial receipt of spousal and survivor benefits is substantial for some households. Past studies find that workers respond...

July 16, 2021
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12Jul

Transferring A Business Following Insolvency In Germany: Who Pays The Pensions Bill?

Acquiring a business on insolvency can have pitfalls, especially if it involves an employee occupational pension scheme. Will the German Federal Labour Court's case law, which is favourable to acquirers, continue to apply following a recent European Court of Justice decision? The promise of a company pension makes companies an attractive employer for (potential) employees. However, if a company is to be sold at some point, the pension obligations can become a dealbreaker from the buyer's point of view. Particularly...

July 12, 2021
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09Jul

Germany finally launches basic pension scheme

Germany’s basic pension scheme kicks off this July Shortly before the federal election in September, Germany’s coalition government is finally delivering on its promise to top-up insubstantial pension benefits to ensure a basic standard of living for all retirees who have contributed to the social security system. Under the new system, anyone who has contributed towards a German pension for at least 33 years will qualify for a basic pension. This includes not just time spent working, but also time taken...

July 9, 2021
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01Jul

Germany. Pension increase rolls out in July

Just in time before the grand coalition government ends for this legislative period, one of its prestige projects is reaching citizens, or more precisely pensioners. According to estimates by the Federal Ministry of Labor, around 1.3 million retirees will receive a supplement to their pensions at taxpayer expense. In the face of opposition from the CDU/CSU, the SPD pushed through the basic pension last year, which is intended to recognize the lifetime achievements of people who have worked all...

July 1, 2021
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June 2021
25Jun

German fintech rivals Deposit Solutions and Raisin merge to form Raisin DS – a European champion with global ambitions

The two German FinTech giants Deposit Solutions and Raisin have just announced the completion of their merger. After over a year of preparation, the two companies are forming Raisin DS, a pioneer in the savings and investment market, servicing banks and consumers on both sides of the Atlantic. Founded in 2011, Deposit Solutions is the leading B2B Open Banking platform in the savings deposit space. The Hamburg-based company operates deposit marketplaces for over 150 partners, including large institutions such as...

June 25, 2021
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17Jun

German Pensionskassen call for rule easing to improve outlook – WTW survey

German Pensionskassen are calling for more relaxed regulatory requirements with a view to a more optimistic outlook, taking into account the current challenging environment. Read also Air France–KLM Completes De-Risking of Pension Plans According to a survey conducted by Willis Towers Watson (WTW), 62% of surveyed Pensionskassen support regulatory changes to improve future prospects. Read also UK. Why investment pathways matter more than you think However, only 14% of the respondents consider Pensionskasse an “interesting way” to run company pension schemes, the survey...

June 17, 2021
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