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Company pension plan versus private savings

Author

Listed:
  • Bert Rürup
  • Aloys Prinz

Abstract

A compromise in German pension reform legislation seems to be at reach. At a pension reform summit at the beginning of September the federal government agreed to partially accept the demands of the unions for an expansion of the company pension system: company pensions should receive more importance in employee's retirement plans. For pension expert and member of the German Council of Economic Experts Professor Bert Rürup of Darmstadt University this is however "not the best solution, under current circumstances, for achieving a supplementary pension system that is both funded and broadly distributed". Professor Rürup favours the introduction of obligatory retirement savings along with an expansion of those insured in the state pension system. For Professor Aloys Prinz of Münster University, however, "the advantages of company retirement plans seem to be greater than a purely private solution".

Suggested Citation

  • Bert Rürup & Aloys Prinz, 2000. "Company pension plan versus private savings," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(25), pages 03-08, November.
    • Handle: RePEc:ces:ifosdt:v:53:y:2000:i:25:p:03-08
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    More about this item

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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