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Tobias Hentze IW-Trends No. 3 1. August 2016 The Effects of Low Interest Rates on Corporate Pension Provisions in Germany
The Effects of Low Interest Rates on Corporate Pension Provisions in Germany
Tobias Hentze IW-Trends No. 3 1. August 2016

The Effects of Low Interest Rates on Corporate Pension Provisions in Germany

German Economic Institute (IW) German Economic Institute (IW)

The zero interest rate policy of the European Central Bank is placing a huge burden on company pension schemes. As a result, companies are being forced to increase provisions for their direct pension obligations to their workforce. However, far from taking appropriate account of this additional expense, the state is taxing fictitious profits resulting in a tax burden of some 20 to 25 billion euros. This is depriving companies of liquidity which could otherwise be invested. A lowering of the imputed interest rate for tax purposes would counteract this effect.

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An Empirical Study of Popular Aversion to Reforms
Matthias Diermeier / Ruth Maria Schüler IW-Trends No. 4 13. November 2023

Changing Germany's Statutory Pension Insurance: An Empirical Study of Popular Aversion to Reforms

The demographic transition is putting the German statutory pension insurance system under enormous pressure to reform. Despite widespread concern, no reform of the adjustment mechanisms incorporated into the pension system meets with the approval of a majority ...

IW

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Ruth Maria Schüler IW-Trends No. 2 30. June 2023

The Importance of Awareness of the Old-age Pension System for Retirement Planning in Germany

People in Germany have a relatively accurate knowledge of the main details of the German pension system.

IW

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