Public pension entitlements relative to wages are lower than in many OECD countries
and past pension reforms will reduce this ratio further.
While old-age poverty is not a major concern in Germany today, poverty
risks among the elderly are expected to increase
(Geyer, 2014; Martens, 2014). The federal government is monitoring the situation carefully.
Continuous employment records and avoiding barriers to employment are important to
reduce poverty risk. Moreover, individuals systematically under-save when planning for
retirement due to myopia (Holmes, 2011; Börsch-Supan, 2005).