Project in detail

Private Pensions and Income Inequality

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While the demographic change forces countries in Europe to shift to a true three-pillar pension system with a higher percentage of private sources of retirement benefits, the influence on income inequality among the retired is yet unclear. While some countries support the build-up of a private retirement account for low income households (like Germany's Riesterrente), other countries have not adopted such schemes, thereby potentially increasing the income inequality in old ages. We plan a comparison of income inequality among the elderly in European countries based on their current retirement system. We will use SHARE data to evaluate the following questions: - who is more likely to have private retirement accounts? - is inequality perpetuated through the different pillars? - how different are European countries in this perspective?

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