By Liu Tao, Institute of Sociology and Institute of East Asian Studies at Duisburg-Essen University in Germany

Research Report, Special Issue, No.86, 2019 (Total 1714)

2019-10-24

Abstract: Through the implementation of the Riester pension insurance system, Germany has established a system for pension assets accumulation based on state regulations. It has centralized the management right of the mandatory pension insurance system to the federal government while phasing out the separated management mode based on occupational and industrial groups. In the elderly care service sector, Germany has established an independent and long-term care insurance system that integrates various social mechanisms and communities to provide elderly care services, which is in line with “welfare pluralism” promoted in welfare countries. The long-term care system provides relevant compensations for the care provided by family members, enhancing the role of households in the elderly care service system. In terms of pension insurance and elderly care services, Germany still adheres to the fundamental principle of “prioritizing the social insurance system” and adopts the multi-level system to shore up weak links induced by the simplex social insurance system. For example, the basic subsistence allowance system and the social assistance system still play an important role in ensuring that everyone has access to basic necessities. Meanwhile, while giving full rein to market forces and reforming the mode of service supply, the government has not weakened its role in public sectors. Instead, it has extensively intervened, coordinated and supervised the old-age security system through approaches based on legislation and market regulation. The government has gradually put market-oriented mechanisms under state control and integrated the mechanisms with an institutional system focusing on public welfare.

Key words: old-age security, long-term care system, Germany