Occupational pension schemes are an important supplement to Germany’s statutory pension insurance. The prevalence of these schemes varies between 40 per cent in one-adult households and 66 per cent in those with couples. In the latter case, the proportion increases to around 86 per cent if non-subsidised forms of investment are taken into account. The savings rate for households with a breadwinner liable to social insurance contributions is about 10 per cent of disposable income. The main obstacle to providing for financial security in old age seems to be unemployment. In view of this, the proposals currently under discussion for promoting occupational pensions are unlikely to solve the problem.
For the statutory pension scheme to be financed sustainably on its current pay-as-you-go basis, as many people as possible need to stay at work until the standard retirement age.
„Actuarially Fair” Reductions in Early Retirees’ Pension Benefits
Calls for the reduction in state pension benefits for early retirees to reflect real insurance risks imply that early retirement need not involve any additional costs.
Jochen Pimpertz IW
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German Economic Institute (IW) 
