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Florian Blank / Johannes Geyer, Peter Haan, Maximilian Schaller / Jochen Pimpertz / Reinhold Thiede / Martin Werding IW-Trends No. 2 6. July 2022 A Variable Retirement Age for Varying Life Expectancies?: Should the State Pension Scheme Take Different Socio-demographic Backgrounds into Account?

While German law stipulates a standard retirement age for all members of the public pension scheme, empirical studies have shown that life expectancy is unevenly distributed within the population, varying according to income level, professional status, occupational health risks, and gender.

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Should the State Pension Scheme Take Different Socio-demographic Backgrounds into Account?
Florian Blank / Johannes Geyer, Peter Haan, Maximilian Schaller / Jochen Pimpertz / Reinhold Thiede / Martin Werding IW-Trends No. 2 6. July 2022

A Variable Retirement Age for Varying Life Expectancies?: Should the State Pension Scheme Take Different Socio-demographic Backgrounds into Account?

German Economic Institute (IW) German Economic Institute (IW)

While German law stipulates a standard retirement age for all members of the public pension scheme, empirical studies have shown that life expectancy is unevenly distributed within the population, varying according to income level, professional status, occupational health risks, and gender.

It can thus be assumed that these same factors influence the length of time retirees draw their pension. In the public debate, this phenomenon, which can lead to regressive distribution effects rendered even stronger by the recent raising of the pensionable age to 67, is often criticised as unjust. Indeed, it could be regarded as justifying demands to base the retirement age or benefit reductions for early retirement on the socio-demographic background of the insured. In our forum, Prof. Peter Haan, Dr. Johannes Geyer and Maximilian Schaller of the German Institute for Economic Research (DIW, Berlin), Prof. Martin Werding of the Ruhr University of Bochum, Dr. Reinhold Thiede of the German Statutory Pension Insurance National Office, Dr. Florian Blank of the Institute of Economic and Social Research (WSI, Düsseldorf) and Dr. Jochen Pimpertz of the German Economic Institute (IW, Cologne) discuss whether variations in life expectancy should be taken into account in pension legislation, how this could be achieved, what the consequences would be, and what alternative solutions could conceivably take account of the different employment biographies and preferences of those entering retirement.

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Should the State Pension Scheme Take Different Socio-demographic Backgrounds into Account?
Florian Blank / Johannes Geyer, Peter Haan, Maximilian Schaller / Jochen Pimpertz / Reinhold Thiede / Martin Werding IW-Trends No. 2 6. July 2022

A Variable Retirement Age for Varying Life Expectancies?: Should the State Pension Scheme Take Different Socio-demographic Backgrounds into Account?

German Economic Institute (IW) German Economic Institute (IW)

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Jochen Pimpertz IW-Trends No. 4 17. December 2023

Expenditures and Revenues in Germany’s Statutory Health Insurance

Almost annually recurring deficits in Germany’s statutory health insurance system have led to a steady rise in the contribution rate, a percentage of earned income.

IW

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Matthias Diermeier / Ruth Maria Schüler IW-Trends No. 4 13. November 2023

Changing Germany's Statutory Pension Insurance: An Empirical Study of Popular Aversion to Reforms

The demographic transition is putting the German statutory pension insurance system under enormous pressure to reform. Despite widespread concern, no reform of the adjustment mechanisms incorporated into the pension system meets with the approval of a majority ...

IW

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