Child pension and the obligation to make provision for old age - the Ifo proposal for a solution to the demographic crisis of the pension system

The pension reforms of recent years have already made progress in alleviating the pressure on the young and future generations. An increase in burdens from high social insurance contributions and the high "implicit tax" of the pensions system must be reduced even further. In order to overcome the long foreseeable demographic crisis of the German pension system, the benefits of statutory pension insurance must be differentiated much more by the number of children. At the same time, a compensating obligation to make old age provisions must be required for insured persons with a low number of children. During past years, the Ifo Institute has suggested concrete solutions for stabilising the German pension system during the phase of acute demographic change until 2035 and for providing a new, long-term framework for its further development.