Demand Inducement, Crowding In and the German Riester Pension Scheme: An Empirical Analysis (in German)

In 2001, the voluntary additional Riester pension scheme was implemented in Germany. Financial subsidies should incentivize people to increase their private pension savings. In this paper, we hypothesize that these publicly subsidized savings mainly replace existing not subsidized savings and that supplier induced demand is an important factor. Using data from the Socio‐economic Panel we analyze the key determinants in the choice of a Riesterpension. We find greater participation of those who already have life insurance or other public subsidied savings. Furthermore, we show that a contact with an insurance agent in the previous year is a major factor for the possession of a Riester‐pension.