Actuarial Adjustments, Retirement Behaviour and Worker Heterogeneity

Arbeitspapier

The behavioural response with respect to actuarial adjustments in the German public pension system is analysed. The introduction of actuarial adjustments serves as a source of exogenous variation to estimate discrete time transition rates into retirement. The analysis is conducted on administrative data from social security records and on survey data in a comparative scenario. Probability mass points that occur for institutional reasons and due to social norms are controlled for. Moreover, worker heterogeneity is taken into account, which has not been addressed in the previous literature. The results show that on average retirement is postponed by five months due to financial incentives via actuarial adjustments. However, this response is about 40 per cent lower for manual workers compared to non-manual workers which indicates that their retirement income may deteriorate.

Object Details

• ISBN: 978-3-86788-559-1
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Ruhr Economic Papers ; No. 490

Classification and Topics

• Classification: Wirtschaft ; Duration Analysis; Optimal Timing Strategies ; Social Security and Public Pensions ; Retirement; Retirement Policies
• Subject: natural experiment ; actuarial adjustments ; retirement ; worker heterogeneity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Giesecke, Matthias
• Event: Veröffentlichung
• (who): Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
• (where): Essen
• (when): 2014

Further information

• DOI: doi:10.4419/86788559
• Handle: http://hdl.handle.net/10419/99751
• Last update: 10.03.2025, 11:44 AM CET