Pension and Intergenerational Balance - A case study of Norway, Poland and Germany using Generational Accounting
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Published:
Jan 30, 2018
Keywords:
Generational Accounting Pension Reform International Comparison Sustainability Intergenerational Redistribution
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Abstract
In this paper we apply the method of Generational Accounting to analyse whether today’s government policy burdens future generations with a heavier load than current generations. We analyse pay-as-you-go pension systems and their reforms in Norway, Poland and Germany. Our results show that, through these reforms, pension systems in all three countries became more intergenerationally balanced as the implicit debt to be paid by future generations was reduced. However, the burden is shared differently: in Norway
current pensioners have to contribute to enhancing the financial sustainability of the pension system while Poland and Germany seem to protect current pensioners at the expense of younger generations.
current pensioners have to contribute to enhancing the financial sustainability of the pension system while Poland and Germany seem to protect current pensioners at the expense of younger generations.
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Author Biographies
Natalie Laub, Universität Freiburg
Natalie Laub received her Diploma in Economics from the University of Freiburg (Germany) in 2012 after four years of studies. Since 2012 she has been a PhD student/researcher at the Research Center for Generational Contracts (University of Freiburg, Germany). Her research interests are in the fields of social security, demography, pension systems and implications of pension reforms – both regarding fiscal sustainability and (in)equality.
Christian Hagist, WHU – Otto Beisheim School of Management
Prof. Dr. Hagist is the director of the DIE FAMILIENUNTERNEHMER endowed Chair of Intergenerational Economic Policy at WHU – Otto Beisheim School of Management. In addition to his academic work, he is an online-columnist and policy consultant, for instance giving testimony at parliament hearings.