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Ersatzraten in der Gesetzlichen Rentenversicherung / Replacement Rates in the German Statutory Pension System

Author

Listed:
  • Kluth Sebastian

    (Max Planck Institute for Social Law and Social Policy, Munich Center for the Economics of Aging, Amalienstr. 33, 80799 München, Germany)

  • Gasche Martin

    (Munich Center for the Economics of Aging (MEA), Max-Planck-Institut, München, Germany)

Abstract

This paper aims to find an adequate concept to evaluate the replacement rate of the latest retiree generation of 2010. Classic replacement rates fail to provide meaningful conclusions because they can only be calculated for around half the retirees. This paper proposes an alternative figure, the so-called life cycle replacement rate, which relates individuals’ pension payments to the average real income over their whole working history. In sum, work history related characteristics like marital status, income or retirement age strongly influence individuals’ replacement rates. Furthermore, women’s replacement rates particularly benefit from non-contribution based pension entitlements, e.g. for periods of child-raising.

Suggested Citation

  • Kluth Sebastian & Gasche Martin, 2015. "Ersatzraten in der Gesetzlichen Rentenversicherung / Replacement Rates in the German Statutory Pension System," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(6), pages 553-583, December.
    • Handle: RePEc:jns:jbstat:v:235:y:2015:i:6:p:553-583
    DOI: 10.1515/jbnst-2015-0604
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    References listed on IDEAS

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    Cited by:

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    2. Schmied, Julian, 2023. "The replacement rate that maintains income satisfaction through retirement: The question of income-dependence," The Journal of the Economics of Ageing, Elsevier, vol. 26(C).
    3. Christian Dudel & Julian Schmied, 2023. "Pension benchmarks: empirical estimation and results for the United States and Germany," Fiscal Studies, John Wiley & Sons, vol. 44(2), pages 171-188, June.

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