Abstract
Intergenerational justice is a complex concept and difficult to grasp in economic terms. It can be operationalised through the principle of sustainability: leave the next generation at least the same amount of wealth that your own generation received. The existing regulations on pension levels and retirement age do not comply with this principle and are therefore unfair to future generations. Maintaining intergenerational justice requires time-consistent and rule-based policies. A sustainable pension policy requires a compromise between benefit and contribution stability. This can be achieved by dynamically adjusting the retirement age to rising life expectancy and dividing the additional years of life between the working and retirement phases according to the 2:1 rule. Company pensions are a successful model and an important pillar of old-age provision. Asymmetric measures such as fixed holding lines jeopardise sustainability, economic growth and fairness.