We take Germany as an example: Twenty years of pension reform have transformed the monolithic German pension system into a multi-pillar system. Formerly generous public pension benefits are gradually being reduced, while substantial incentives are granted to occupational and private saving schemes. Has this transition workedout? We survey the reform steps and household’s reactions: How did individuals adjust their labor market behavior? How did private and occupational pension plans take off? How do behavioral adjustments vary in the population?