How risky is the German pension system? The volatility of the internal rates of return

In this paper we analyze exemplarily the volatility of the internal rates of return of the German pension system over the life-cycle of an individual born in 1957. The outcome is compared to an alternative defined-contribution or defined-benefit policy. Based on the actual data, our results show the volatility of the internal rate of return to be significantly higher under the actual policy. We furthermore find that the sustainable internal rates of return are close to zero for the youngest male cohorts and positive for females for optimistic growth scenarios. In more realistic scenarios things turn worse. --Risk,internal rate of return,sustainability

Demographics and Volatile Social Security Wealth: Political Risks of Benefit Rule Changes in Germany

In this paper we address the question how the generosity of the benefit rule of the German public pension system has changed during the past three decades and how this development can be explained by demographic changes. Firstly, we illustrate the political risk of benefit rule changes for individuals. We find that depending on the birth year and the considered scenario the relative losses vary between 30 and nearly 60 percent. Secondly, we estimate how demographic developments have triggered these changes in generosity. Our results suggest that future developments of the old-age dependency ratio have an influence on the determination of generosity.social security wealth, demography, political economy, Germany

How can Art Therapy Help Individuals with Chronic Illnesses? A Literature Review

This literature review examines the influence of art therapy on the self-esteem of individuals who suffer from chronic pain. The research question was: How can art therapy help individuals with chronic illnesses? Through an exploration of the topics of art therapy, chronic pain, parenting style, and self-esteem, it was noted that there is a gap in literature about art therapy’s influence on self-esteem resulting from chronic pain. However, an analysis of the literature reveals that art therapy can influence the self-esteem of individuals who suffer from chronic pain. Art therapy can influence this population by providing a sense of belonging, another form of communication, self-expression, and navigating their experience of pain

Measuring accrued-to-date liabilities of public pension systems: Method, data and limitations

This paper introduces the approach of the Freiburg model to quantify accrued-to-date liabilities (ADL) of public pension schemes. The presented framework has been applied to carry out benchmark calculations for 19 EU member states on behalf of the Eurostat/ECB Contact Group on Pensions. We will show that the Freiburg model represents a valuable instrument to calculate pension schemes' ADL on a relatively small data base. Furthermore, limitations and possible extensions of the model will be outlined. --

Andersonvilles of the North: The Myths and Realities of Northern Treatment of Civil War Confederate Prisoners

Prisoners of War In this important study of northern prisoner of war camps and policies governing them, James M. Gillispie counters many earlier treatments of the subject. Gillispie makes a compelling case that southern Lost Causers trying to counter condemnation of the South for the h...

How risky is the German pension system? The volatility of the internal rates of return

In this paper we analyze exemplarily the volatility of the internal rates of return of the German pension system over the life-cycle of an individual born in 1957. The outcome is compared to an alternative defined-contribution or defined-benefit policy. Based on the actual data, our results show the volatility of the internal rate of return to be significantly higher under the actual policy. We furthermore find that the sustainable internal rates of return are close to zero for the youngest male cohorts and positive for females for optimistic growth scenarios. In more realistic scenarios things turn worse

How risky is the German pension system? The volatility of the internal rates of return

In this paper we analyze exemplarily the volatility of the internal rates of return of the German pension system over the life-cycle of an individual born in 1957. The outcome is compared to an alternative defined-contribution or defined-benefit policy. Based on the actual data, our resultsshow the volatility of the internal rate of return to be significantly higherunder the actual policy. We furthermore find that the sustainable internalrates of return are close to zero for the youngest male cohorts and posi-tive for females for optimistic growth scenarios. In more realistic scenariosthings turn worse

Demographics and Volatile Social Security Wealth: Political Risks of Benefit Rule Changes in Germany

In this paper we address the question how the generosity of the benefit rule of the German public pension system has changed during the past three decades and how this development can be explained by demographic changes. Firstly, we illustrate the political risk of benefit rule changes for individuals. We find that depending on the birth year and the considered scenario the relative losses vary between 30 and nearly 60 percent. Secondly, we estimate how demographic developments have triggered these changes in generosity. Our results suggest that future developments of the old-age dependency ratio have an influence on the determination of generosity

Measuring accrued-to-date liabilities of public pension systems: Method, data and limitations

This paper introduces the approach of the Freiburg model to quantify accrued-to-date liabilities (ADL) of public pension schemes. The presented framework has been applied to carry out benchmark calculations for 19 EU member states on behalf of the Eurostat/ECB Contact Group on Pensions. We will show that the Freiburg model represents a valuable instrument to calculate pension schemes' ADL on a relatively small data base. Furthermore, limitations and possible extensions of the model will be outlined