The Rationale for Fundamental Pension Reform in the Germany and the United States: An Assessment

37 Pages Posted: 8 Aug 2001

See all articles by Gary Burtless

Gary Burtless

Brookings Institution; Boston College - Retirement Research Center

Date Written: June 2001

Abstract

This paper considers the arguments for fundamental pension reform in Germany and the United States. The two countries have recently made or are considering reforms that would reduce the generosity of the traditional, pay-as-you-go pension system. Some or all of the lost benefits would be replaced by pensions from newly created individual, defined-benefit, retirement accounts. The paper addresses three questions that are relevant for assessing fundamental reform: (1) Should the pension system move toward advance funding of future benefit obligations? (2) What financial assets should be accumulated to back future pension promises? (3) Should the existing system be reformed to include individual retirement accounts?

JEL Classification: G23, H55, I26

Suggested Citation

Burtless, Gary T, The Rationale for Fundamental Pension Reform in the Germany and the United States: An Assessment (June 2001). Available at SSRN: https://ssrn.com/abstract=277287

Gary T Burtless (Contact Author)

Brookings Institution ( email )

1775 Massachusetts Ave. NW
Economic Studies Program
Washington, DC 20036-2188
United States
202-797-6000 (Phone)
202-797-6181 (Fax)

Boston College - Retirement Research Center ( email )

Fulton Hall 550
Chestnut Hill, MA 02467
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
230
Abstract Views
1,661
rank
145,540
PlumX Metrics