Pension reform in Germany since the 1990s: new developments and theoretical implications

This article scrutinizes the pension reform in Germany since the 1990s, from two angles: (1) the establishment of a funded pension – the Riester pension plan; and (2) the development of family oriented and gender-neutral pension policies. It argues that the creation of a funded pension scheme in Germany has transcended the conventional distinction between state and market and has resulted in the emergence of a hybrid form of regulatory welfare state and regulated welfare market. From a gender perspective, the current German pension system has become much more gender neutral, ‘feminine’ and ‘family friendly’, fundamentally altering the Bismarckian prototype by balancing the pension rights of both sexes. The final section explores the implications of German pension reform for the current situation in China.