Pension reform in Germany: The impact on retirement decisions

Berkel, Barbara ; Börsch-Supan, Axel

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URN: urn:nbn:de:bsz:180-madoc-8899
Document Type: Working paper
Year of publication: 2004
The title of a journal, publication series: MEA Discussion Papers
Volume: 062
Place of publication: Mannheim
Edition: Final Version 31-March-2004
Publication language: English
Institution: School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series: Veröffentlichungen des MEA (Mannheim Research Institute For the Economics of Aging) > MEA Discussion Papers
Subject: 330 Economics
Classification: JEL: D1 , J26 , H55,
Subject headings (SWD): Rentenreform , Deutschland
Abstract: The paper examines the long-term implications of various reform options on 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 two years. The two-year increase in all relevant age limits proposed by the "Rürup Commission" would raise retirement age of men by another eight months.

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