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Pension Reform in Germany: The Impact on Retirement Decisions

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Author Info
Barbara Berkel
Axel Börsch-Supan
Abstract

The paper examines the long-term implications of various reform options for retirement entry decisions and the actual retirement age of older workers. It focuses on the changes in pension legislation since 1992 and the reform options discussed by the German Social Security Reform Commission installed in 2002 (Rürup Commission). Our simulations show that the early-retirement adjustment factors introduced by the 1992 pension reform will raise the average effective retirement age for men by almost 2 years. The 2-year increase in all relevant age limits proposed by the Rürup Commission would raise the retirement age of men by another 8 months.

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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.

Volume (Year): 60 (2004)
Issue (Month): 3 (September)
Pages: 393-
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200409)60:3_393:prigti_2.0.tx_2-s

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Web page: http://www.mohr.de/fa

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Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
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Related research
Keywords: retirement decisions; social security reform; retirement age; adjustment factors;

Other versions of this item:

Find related papers by JEL classification:
D1 - Microeconomics - - Household Behavior
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

Cited by:
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  1. Martin Hering, 2008. "Grand Coalitions for Unpopular Reforms: Building a Cross-Party Consensus to Raise the Retirement Age," Social and Economic Dimensions of an Aging Population Research Papers 233, McMaster University. [Downloadable!]
  2. Barbara Berkel, 2006. "Retirement Age and Preretirement in German Administrative Data," MEA discussion paper series 06107, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
  3. Axel H. Börsch-Supan & Anette Reil-Held & Christina B. Wilke, 2007. "How an Unfunded Pension System looks like Defined Benefits but works like Defined Contributions: The German Pension Reform," MEA discussion paper series 07126, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
  4. Friedrich Breyer & Stefan Hupfeld, 2007. "On the Fairness of Early Retirement Provisions," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  5. Axel Börsch-Supan & Hendrik Jürges, 2007. "Early Retirement, Social Security and Well-Being in Germany," MEA discussion paper series 07134, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
    Other versions:
  6. Melanie Lührmann, 2007. "Consumer Expenditures and Home Production at Retirement - New Evidence from Germany," MEA discussion paper series 07120, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
    Other versions:
  7. Barbara Berkel, 2006. "Retirement Age and Preretirement in German Administrative Data," MEA discussion paper series 06107, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
  8. Ale?Ahcan & Sašo Polanec, 2008. "Social Security and Retirement during Transition:Microeconometric Evidence from Slovenia," LICOS Discussion Papers 22108, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
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