ZEW - Centre for European Economic Research

08/17/2023 | Press release | Distributed by Public on 08/17/2023 00:15

Altered Savings Behaviour Due to Pension Reform // ZEW Study Reveals: When Women Plan to Retire Later, They Save Less – Yet Have More Money Available in Old Age

ZEW Study Reveals: When Women Plan to Retire Later, They Save Less - Yet Have More Money Available in Old Age

Women have more money available in old age.

In 1999, a pension reform raised the retirement age for women from 60 to 63, affecting those born in 1952 or later. This reform has had a significant - albeit individually variable - impact on the working lives of those affected. A recent study by ZEW Mannheim and the University of Mannheim reveals that women have been taking this reform into consideration early on and, as a result, save less and spend more money during their working years compared to before the pension reform. However, women born in 1952 or after still enjoy higher incomes during retirement.

"While most affected women save less for their old age, as they factor in their extended working lives, they do not necessarily face a disadvantage. In fact, they have a higher overall income available, particularly in retirement," says Dr. Björn Fischer, a researcher in ZEW's "Labour Markets and Social Insurance" Unit and one of the authors of the study. The ZEW study, which analysed data from the Sample Survey of Income and Expenditure (EVS) and data from German respondents in the Survey of Health, Ageing and Retirement in Europe (SHARE), demonstrated that women born after 1952 adjust their savings behaviour in response to the pension reform implemented in 1999. In total, the EVS data included almost 25,000 households, while over 1,500 women were interviewed as part of the SHARE survey.