Eldery Persons in Germany: Disposable Income and Resource Use

Authors: Ulrich Bieber, Dr. Michael Stegmann/Locations: Rheinbach, Würzburg

The debate on the economic situation of eldery persons and, especially, of pensioners has turned out to be a socio-political “building site”. The article updates the examination on the basis of the socio-economic panel (SOEP) which reflects the income situation of eldery per-sons as compared to the general distribution of income. As an example, low pension adjust-ments lead to a decline of the relative income position of pensioners only, when the income situation of younger groups of persons improves due to wage increases or new chances of employment. The development of other income components is relevant, too. Furthermore, structural factors play a significant role because the composition of the relevant group changes constantly. All things considered, the factors of influence are so complex that the development of the relative income situation of eldery persons in the last years cannot be es-timated ad hoc, still, analyses are worthwile.

The authors complement their examination by analysing the savings behaviour as well as vo-luntary transfer payments. Last but not least, they describe the parameters that coin the con-ception of the minimum living standard in society, both for the young and the aged.

As a result, a particular precarious income development among the eldery population cannot be attested. On the contrary, the income situation of elderly persons is comparatively good. The examination of relevant living standard features puts the situation of senior citizens in a comparatively positive light.

Download