Eine gute Rente ist machbar

What constitutes a pension provision level that safeguards living standards, and how can this be achieved? The authors propose a provision level of at least 75% of average lifetime net income after tax and calculate the pension gap that currently exists when income from the statutory pension is the sole source of income in old age. Two models are presented which, building on the existing elements of the German old-age pension system, can close this gap. The overall costs would not be higher than they are today, provided that an effective occupational pension scheme is in place and/or pension provision is funded to the recommended extent from employees’ net income.