determinants of retirement in germany dr. erika schulz
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![Page 1: Determinants of retirement in Germany Dr. Erika Schulz](https://reader034.vdocument.in/reader034/viewer/2022042608/56649f155503460f94c29c26/html5/thumbnails/1.jpg)
Determinants of retirement in Germany
Dr. Erika Schulz
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Erika Schulz12.06.2003
Tasks of WP 3– To show how health factors affect labour
supply and early retirement – Calculation of net replacement rates
• valuation of household work• separate calculations for unhealthy with
altered labour supply and household work
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Erika Schulz12.06.2003
Requested data
– Wage of a reference worker in households– pension level and earnings for a average
production worker– average retirement age
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Erika Schulz12.06.2003
Hourly rates for household workers
Part-time employees (not more than 15 hous per week)Total not more than 325 EURO per month 2001
Wage costs for employer 9,76 social security contributions paid by employer (22%) 1,76Gross wage 8 social security contributions paid by employee 0 labour income tax (tax group I) 0net wage 8
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Erika Schulz12.06.2003
Hourly rates for household workersHalf time worker ( not more than 19,25 hours per month)Total more than 325 EURO per month 2001
Wage costs for employer 9,63 social security contributions paid by employer (20,4%) 1,63Gross wage 8 social security contributions paid by employer (20,4%) 1,63 labour income tax (tax group I)* 0net wage 6,37
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Erika Schulz12.06.2003
Hourly rates for household workers
Full time worker ( 38,5 hours per month)Total more than 325 EURO per month 2001
Wage costs for employer 9,63 social security contributions paid by employer (20,4%) 1,63Gross wage 8 social security contributions paid by employer (20,4%) 1,63 labour income tax (tax group I)* 1,24net wage 5,13
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Erika Schulz12.06.2003
Net pension level of a standard pensioneer in %
55,0
65,0
75,0
net
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Erika Schulz12.06.2003
Average Retirement Age in the Statutory Pension System 1960 bis 2000West-Germany
58,0
58,5
59,0
59,5
60,0
60,5
61,0
61,5
62,0
62,5
63,0
year
avera
ge r
eti
rem
en
t ag
e
Men Women
old-age pension
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Erika Schulz12.06.2003
Average Retirement Age in the Statutory Pension System 1993 to 2000East-Germany
57,0
58,0
59,0
60,0
61,0
62,0
1993 1994 1995 1996 1997 1998 1999 2000
year
avera
ge r
eti
rem
en
t ag
e
Men Women
old-age pension
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Erika Schulz12.06.2003
Kind of pensions in Germany– Old-age pensions (Since 1889)
• Regular old age pensions (65 years)
• Old-age pensions for long-standing insured (since 1972; since 2000 63->65)
• Old-age pensions for severly disabled persons, with vocational invalidity or general invalidity (since 1972; new 60->63 years)
• Old-age pensions on account of unemployment or following old-age part-time work (since 1929; new 60->65 years, limited to persons born before 1952)
• Old-age pensions for women (since 1957; new 60->65, limited to persons born before 1952)
– Pensions on account of decreased earning capacity• Vocational/general invalidity (since 1889)
• New system (since 2000)
– Pensions on account of death
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Erika Schulz12.06.2003
Kind of Pensions 1960 to 2000Statutory Pension System - both sexes
West-Germany
0%
20%
40%
60%
80%
100%
year
shar
e o
f
pension on account of decreased earning capacity
regular old-age pension
old-age pension for long-standing insured
old-age pension for severely disabled persons
old-age pension on account of unemployment
old-age pension for women
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Erika Schulz12.06.2003
Kind of Pensions 1993 to 2000Statutory Pension System - both sexes
East-Germany
0%
20%
40%
60%
80%
100%
1993 1994 1995 1996 1997 1998 1999 2000
year
shar
e o
f
pension on account of decreased earning capacity
regular old-age pension old-age pension for long-standing insured
old-age pension on account or unemployment
old-age pension for severely disabled persons
old-age pension for women
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Erika Schulz12.06.2003
Average Retirement Age in the Statutory Pension System 1960 to 2000West-Germany
50,0
52,0
54,0
56,0
58,0
60,0
62,0
year
aver
age
reti
rem
ent
age
Men Women
pension on account of decreased earning capacity
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Erika Schulz12.06.2003
Average Retirement Age in the Statutory Pension Fund 1993 to 2000East-Germany
49,0
49,2
49,4
49,6
49,8
50,0
50,2
50,4
1993 1994 1995 1996 1997 1998 1999 2000
year
aver
age
reti
rem
ent
age
Men Women
pension on account of decreased earning capacity