The link between pension levels and old-age poverty: Simulation analyses

Completed Project

Department

Public Economics

Project Management

Johannes Geyer
Anna Hammerschmid

Project Period

January 1 - May 31, 2019

Commissioned by

Deutscher Gewerkschaftsbund (DGB)

In this project, we analyze and illustrate the link between pension levels and poverty risk in old age in two steps. First, using stylized calculations, we show how changing pension levels affect the distance between retirement benefits  and basic means-tested social benefits (Grundsicherung im Alter). Second, we analyze the impact of changing pension levels on old-age poverty risk and eligibility for basic means-tested social benefits (Grundsicherung im Alter) using micro simulation techniques.

DIW Team