Private Retirement Savings in Germany : The Structure of Tax Incentives and Annuitization ∗

@inproceedings{Fehr2008PrivateRS,
  title={Private Retirement Savings in Germany : The Structure of Tax Incentives and Annuitization ∗},
  author={Hans Fehr and C. Habermann},
  year={2008}
}
The present paper studies the growth, welfare and efficiency consequences of the recent introduction of tax-favored retirement accounts in Germany in a general equilibrium overlapping generations model with idiosyncratic lifespan and labor income uncertainty. We focus on the implicit differential taxation of specific savings motives, the mandatory annuitization of benefits and the impact of special provisions for low-income households. The simulations indicate that the reform improves overall… CONTINUE READING