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The Impact of the COVID-19 Pandemic on the German Pension System

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  • Dennis C. Tale

    (University of Finance and Administration)

Abstract

The COVID-19 pandemic was declared over in April 2023. Like the financial crisis of 2008, the pandemic outbreak had an exogenous shock effect on Germany's micro- and macroeconomic environment. This mainly affected the labor market, and after that, the Bundesregierung took measures to stabilize the labor market to prevent a dramatic increase in unemployment. The German pension system is a pay-as-you-go system that is financed on a long-term basis by demographic and economic developments. Based on these factors, projections on the effects of the COVID-19 pandemic on statutory pension insurance in Germany were already made in 2020. This paper compares the forecasts from 2020 with the actual development, combined with whether German pension insurance can be assessed as sustainable after the pandemic.

Suggested Citation

  • Dennis C. Tale, 2023. "The Impact of the COVID-19 Pandemic on the German Pension System," ACTA VSFS, University of Finance and Administration, vol. 17(1), pages 60-72.
    • Handle: RePEc:prf:journl:v:17:y:2023:i:1:p:60-72
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    References listed on IDEAS

    as
    1. Fenge, Robert & Peglow, François, 2018. "Decomposition of demographic effects on the german pension system," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 61-76.
    2. Axel Börsch-Supan & Johannes Rausch, 2020. "Corona-Pandemie: Auswirkungen auf die gesetzliche Rentenversicherung," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(04), pages 36-43, April.
    3. Zwick, Thomas & Bruns, Mona & Geyer, Johannes & Lorenz, Svenja, 2022. "Early retirement of employees in demanding jobs: Evidence from a German pension reform," The Journal of the Economics of Ageing, Elsevier, vol. 22(C).
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    More about this item

    Keywords

    COVID-19; Demographic development; Labour market; Pension system; Germany;
    All these keywords.

    JEL classification:

    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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