Early retirement and mortality in Germany

Area of Science:

• Gerontology
• Public Health
• Economics

Background:

• Mortality differences by retirement age significantly affect pension insurance finances.
• Existing research for Germany lacks definitive conclusions on this relationship.

Purpose of the Study:

• To analyze mortality rates by retirement age in Germany.
• To estimate life expectancies and survival probabilities based on retirement age, disease credits, and pension income.

Main Methods:

• Utilized microdata from all German old-age pensioners.
• Analyzed 1.84 million death records.
• Estimated life expectancies and survival probabilities at age 65 for subgroups.

Main Results:

• Men retiring later exhibit significantly longer life expectancies at age 65 (13 to 17.8 years).
• Higher disease credits correlate with increased male mortality at all retirement ages.
• Mortality decreases with later retirement age for a fixed duration of disease credits, suggesting healthy worker selection.
• The 'work longer, live longer' effect is consistent across all pension income quintiles.
• Female pensioners' mortality shows minimal variation with retirement age.

Conclusions:

• Retirement age is a significant determinant of male longevity and impacts pension system solvency.
• Healthy worker selection and cumulative health status appear to influence mortality patterns.
• Policy implications for pension financing and public health strategies are suggested.