October 2017 – Cheap credit comparison

by Kimberly Nelson

The recently published study “Preventing Age Unequality” by the Organization for Economic Cooperation and Development (OECD) does not bode well. As people get older, the gap between rich and poor continues to widen. Germany is below the average of the member states.

Education has a significant influence on the amount of the pension

Education has a significant influence on the amount of the pension

The main factor influencing this is training. This has an effect on the professional life and its continuity, and thus on the level of income and thus on the pension.

The study shows that people with better education have more continuity in their professional life. Lower-skilled workers change jobs more often in combination with periods of unemployment. Towards the end of working life, between the age of 55 and 60, the gap is greatest within a generation.

The newspaper “Die Welt” wrote in the context of the study that low earners rank pension in Germany significantly below the median of the OECD countries. They received only 55 percent of their last income as a pension. In the OECD average, however, it is 75 percent. The Research Center for Generational Contracts at the University of Freiburg assumes that at least 60 percent of the last income is needed as a pension to maintain the standard of living. Men with a qualified education have a pension loss of 17 percent compared to their last salary. In the case of their unqualified mates, the loss of income is almost twice as high at 33 percent.

Inequality is already rooted in childhood, according to the OECD. Children from poorer households or families with lower education levels have significantly worse chances of later qualifying school-wise and academically for better-paid jobs.

“Gender Gap” is slowly leveling off in Germany

The gender gap, the difference in salaries and pensions is slowly getting smaller in Germany, but there is no question of leveling for a long time. On a nationwide average, women receive a 46 percent lower pension than men. The reasons are obvious. The professional life with real payments into the pension fund is often interrupted by parenting and later by family care. The credit periods can compensate for a real contribution payment only conditionally.

In the OECD, women receive a “only” 27 percent lower pension. The Federal Ministry of Family Affairs makes a good face to the bad game. After all, the difference in pensions since 2011 has reduced by 11 percent from 57 percent to 46 percent.

Life expectancy also has to do with education

Life expectancy also has to do with education

The OECD study reveals a different matter. There is obviously a direct connection between the life expectancy of a person and his educational level. Looking at life expectancy in terms of education across OECD member states, a 25-year-old high-educated man has eight years longer life expectancy than a peer without qualifications. For women, qualified training increases life expectancy by 4.6 years on average.

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