Topic Retirement and Pension Provision

Health-Related Life Cycle Risks and Public Insurance

Based on a dynamic life cycle model, this study analyzes health-related risks of consumption and old-age poverty. The model allows for health effects on employment risks, on productivity, on longevity, the correlation between health risks, productivity and preferences, and the financial incentives of the German public insurance schemes. The estimation uses data on male employees and an extended expectation-maximization ...

Labor Supply and Fiscal Effects of Partial Retirement - the Role of Entry Age and the Timing of Pension Benefits

In recent years policy-makers are incentivizing later retirement entry by enabling flexible transitions into retirement through partial retirement. However, empirical evidence shows that the labor supply and related fiscal effects of more flexibility in the pension system, through partial retirement, are ambiguous and strongly depend on the design of partial retirement regimes. Two margins are in particular ...

Pension reforms and behavioral perspectives on pensions

Joint workshop with FU Berlin, Hebrew University and CRC 190 The aim of the workshop is to bring together scholars from Israel and Germany who pursue research projects on the interrelations between pension systems, demography, and capital markets.

The Effect of a Longer Working Horizon on Individual and Family Labour Supply

An empirical analysis of non-take up of social assistance for the elderly

The aim of the research project was to non-take-up of social assistance for the elderly. The analysis is based on the Socio-economic Panel (SOEP). Using a microsimulation model (STSM) developed at DIW Berlin, it was determined on the basis of survey data from the previous year (including income and property information, household context, living situation, health situation, household equipment)...

Later pension, poorer health? Evidence from the new State Pension age in the UK

Rates of return in pension schemes

In the project, calculations are to be carried out on the return on different forms of old-age provision for three types of individuals: low earners, average earners and high earners. A distinction is made between calculations for the statutory pension insurance (GRV) and for company pensions (BAV). The main aim is to show how different legal regulations in the GRV and BAV that will be effective...

The new grand coalition’s work program: DIW Berlin says there is still much to improve

In important areas such as tax policy, education, and energy, the future grand coalition must be considerably more ambitious – The need for reform in Germany is not being addressed sufficiently Germany’s next government will most likely once again be a grand coalition. However, the results of the preliminary coalition talks between the Union parties and the SPD, which serve as a basis ...

Labor Market and Distributional Effects of an Increase in the Retirement Age

We evaluate the labor market and distributional effects of an increase in the early retirement age (ERA) from 60 to 63 for women. We use a regression discontinuity design which exploits the immediate increase in the ERA between women born in 1951 and 1952. The analysis is based on the German micro census which includes about 370,000 households per year. We focus on heterogeneous labor market effects ...

Effectiveness of Early Retirement Disincentives: Individual Welfare, Distributional and Fiscal Implications

In aging societies, information on how to reform pension systems is essential to policy makers. This study scrutinizes effects of early retirement disincentives on retirement behavior, individual welfare, pensions and public budget. We employ administrative pension data and a detailed model of the German tax and social security system to estimate a structural dynamic retirement model. We find that ...