The Projected Development of the Gender Pension Gap in Switzerland: Introducing MIDAS_CH

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Referenz

Kirn, T., & Dekkers, G. (2023). The Projected Development of the Gender Pension Gap in Switzerland: Introducing MIDAS_CH. International Journal of Microsimulation, 16(3).

Publikationsart

Beitrag in wissenschaftlicher Fachzeitschrift

Abstract

This study presents the newly developed dynamic cross-sectional microsimulation model MIDAS_CH, which is developed to assess the pension adequacy of the 1st and the mandatory part of the 2nd pillar pension systems. By simulating the entire life-spans of native and immigrating individuals we analyse the impact of the most recent pension reform, which increased the statutory retirement age (SRA) of women from 64 to 65. Furthermore, the impact of a reduction of the conversion rate in the 2nd pillar - which is a quite likely policy scenario – is also analysed. Our simulations suggest that the GPG would decline from 23.6% in 2020 to 21.6% in 2070. Although this decline appears to be marginal, there are signs of a catching-up process, especially among higher incomes. This catching-up process of women’s pensions may be driven by an increasing share of women having a tertiary educational attrition, which results in higher wages and higher activity rates. This leads to a reduction of the GPG in the upper income range. However, since labour market participation as well as the extent of part-time employment are positively correlated with the level of education, this would also lead to a larger variance in women’s lifetime earnings. The simulation of the policy scenarios suggests that an increase in the SRA of women increases their retirement income only marginal, whereas a reduction of the conversion rate from 6.8% to 5.2% would decrease the 2nd pillar pension income by 23.5%.

Mitarbeiter

Einrichtungen

  • Center for Economics
  • Liechtenstein Business School

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Link

DOI

http://dx.doi.org/DOI:10.34196/IJM.00290