Germany | Melbourne Mercer Global Pension Index : Melbourne Mercer Global Pension Index


Germany


germany flag Germany

Germany’s retirement income system comprises an earnings-related 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.

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

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

RRF19921 MMGPI Report 0616 Chart WEB 1000x950 11 GERMANY Germany 

Progressive Results:

Year

Overall

Adequacy

Sustainability

Integrity

2016  59.0 70.4 35.8 73.1

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.

2015 62.0 76.0 36.8 75.0
The German index value fell slightly from 62.2 in 2014 to 62.0 in 2015 due to a number of small changes.
2014  62.2  75.8  37.6  75.0
The German index value increased from 58.5 in 2013 to 62.2 in 2014 primarily caused by a reassessment regarding the provision of annuities and the improved benefits provided on resignation.
2013

58.5

69.7

36.8

71.1

The German index value improved from 55.3 in 2012 to 58.5 in 2013 due to minor adjustments to several scores within the adequacy and integrity sub-indices.
2012

55.3

65.2

35.9

66.7

The German index value increased slightly from 54.2 in 2011 to 55.3 in 2012 primarily due to the change in scoring for the level of investment in growth assets and an improvement in the integrity sub-index.
2011

54.2

63.5

36.4

64.4

The German index value rose very slightly from 54.0 in 2010 to 54.2 in 2011. However this overall stability  masked a decline in the sustainability sub-index (arising from a reduced score in three of the indicators) which was offset by an improvement in the integrity sub-index which allowed for the important role of the PSVaG, the German pension insolvency fund.
2010

54.0

64.1

42.3

54.4

The German index value rose from 48.2 in 2009 to 54.0 in 2010 due, in part, to an increased recognition of some of the features of the commonly used book reserving approach.
2009

48.2

60.8

44.3

33.7

 Media 2016:

Media 2015:

Media 2014:


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