Provision during old age for people with flexible employment biographies in Germany

Third-party funded project: Landesstiftung Baden-Württemberg

Dr. Susanne Strauß

The project looks at the question how flexible employment biographies effect old-age provision in Germany. The following deviations from the “normal employment history” are investigated: (1) interruptions in income due to unemployment, time off for raising children and caring for relatives, (2) early retirement, (3) changing companies and professions, (4) reduced working hours (part-time) on the one hand and marginal employment on the other, and (5) self-employment. The project’s particular interest is the situation of women as well as the influence of education on the life-time income of people with flexible employment biographies, thereby affecting possibilities for establishing provisions for old age to avoid poverty. In a first step, the influence of various flexible employment biographies on life-time earnings of an already retired cohort is analyzed. The second step comprises an analysis of the life-time earnings (so far) of a younger cohort. For both cohorts, in a third step, the (complete or to-date) pensions are calculated. For this, the current formula for calculating state pensions is used and various elements of reform options in pension insurance are simulated to examine their distribution effects.