Financial Incentives and Heterogeneity in Retirement Behavior

Mitarbeiter in diesem Projekt:

Demographic change is a challenge for many European countries. This prognosis puts pressure on the pay-as-you-go public pension system. Over the past few decades, different reforms have come into force that aim at keeping older workers longer in the labor market, such as the increase of statutory eligibility ages, abolishment of early retirement pathways, or the introduction of actuarial adjustments for early or late retirement. The purpose of this project is to investigate the individual response in retirement behavior with respect to varying financial incentives in the German public pension system. In more detail, we analyze the gradual introduction of actuarial adjustments for early retirement with the 1992 pension reform in Germany. The central research question of this project is whether individuals postponed their retirement entry as a reaction to the introduction of the adjustments factors. In addition, we want to find out whether there are differences in the retirement responses for individuals with different occupation types. We use SHARE-RV data, which offers a direct linkage of high-quality administrative data from the German public insurance with the survey data from the Survey of Health, Ageing and Retirement in Europe (SHARE).

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