Abstract

The Pension Provision of the Self-Employed in Germany and Europe – The Current State of Discussion and Perspectives

In light of changing employment structures, modified employment biographies and increasing transitions between dependent employment and self-employment, an obligatory old-age provision for self-employed persons is currently being discussed in Germany. The political need for action is primarily a result of the increasing percentage of self-employed persons who are on low incomes and who, consequently, increasingly face the risk of old-age poverty when they retire. In contrast to the most other European countries, no statutory obligation for pension provision exists for the majority of self-employed persons in Germany. In broad terms, there are two alternative proposals for the organisation of an obligatory pension scheme for the self-employed: first, the compulsory coverage of the self-employed by the statutory pension insurance scheme and, second, an obligation for the self-employed to join either private pension schemes or funds that cover the professional classes. In terms of the former, a crucial issue within political discussions will be whether a main objective of any reform will be the equal treatment of the self-employed and persons already covered by the statutory pension insurance scheme.