The Heterogeneity of Income Groups and Its Meaning for the Future Development of the German Pension System | Munich Center for the Economics of Aging - MEA
Home

Research

Social Policy and Old Age Provision

The Heterogeneity of Income Groups and Its Meaning for the Future Development of the German Pension System

Our pension simulation model MEA-PESNIM models the development of the statutory pension insurance on the basis of an average individual per cohort, whereby a distinction is made between East and West Germany, women and men, and specific labor market groups (e.g. the self-employed, civil servants, employees). In this project we want to expand relatively simple differentiation by splitting up the dependent employees by income groups. On the one hand, the aim is to demonstrate the importance of the different income groups for the pension insurance. For example the different life expectancy of income groups may affect the long-term pension projections. On the other hand, a finer breakdown allows for the study of more far-reaching pension reforms that, for example, soften the "Äquivalenzprinzip".

So far the first projections are done. However, the calculations has to be redone due to the Corona-Pandemic. The introduction of the income groups lead only to minimal changes in the most important determinants of the pension system. However, it enables to analyses redistribution effects of the pension system and enables an easier introduction of pension reforms aiming to soften the "Äquivalenzprinzip".

Contact Person(s)
Rausch-2

Dr. Johannes Rausch