Authors: Dr. Jürgen Ehler, Dr. Carroll Haak/Location: Berlin
The so-called Riester-Pension (optional and tax-subsidized pension scheme to compensate for cuts in state pension, named after the former Federal Minister for Labor and Social Af-fairs, Walter Riester) is celebrating its 10th anniversary. The Federal Ministry for Labour and Social Affairs (Bundesministerium für Arbeit und Soziales - BMAS) estimates that the number of Riester-contracts amounted to almost 15 millions in autumn 2011. In retrospect, the minis-try takes a positive view of the development.
Since the outbreak of the financial crisis, there are however strong indications that the confi-dence of the investors in capital-funded old-age provision has been weakened. Furthermore, a broad public debate about unsatisfactory contractural arrangements of Riester-schemes is being conduced, so that potential investors may decide against a Riester-scheme more of-ten.
The article discusses the question: Which motives are relevant for consumers´ decisions in the field of tax-subsidized privately funded old-age provision? The authors analyse what could discourage persons eligible for tax-subsidies from concluding a Riester-contract. The empirical basis for the investigations is the Survey on Individual Old-Age Provision 2009 (Be-fragung Individuelle Altersvorsorge 2009 - IAV 2009), in which the distribution of pension en-titlements of the 1942 to 1961 birth cohorts in the field of occupational pension schemes and privately funded old-age provision has been quantified by use of a representative sample. The authors´ conclusions clarify that the reliabilty of privately funded old-age provision is an important factor for the persons eligible for tax-subsidies in the mentioned birth cohorts, and effects their decision to conclude and actually invest money into a Riester-contract.
