Figures and data in The financial implications of working longer: An application of a micro-economic model of retirement in Belgium

Cite this article as: G. J. M. Dekkers; 2007; The financial implications of working longer: An application of a micro-economic model of retirement in Belgium; International Journal of Microsimulation; 1(1); 10-25. doi: 10.34196/ijm.00003

4 figures and 10 tables

Figures

Figure 1

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Activity rate of 55–65 year olds, and effective retirement age in Europe (European Community, 2003: 42–48).

Figure 2

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The structure of the micro-economic pension model.

Figure A1

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Wage per day for the categories of workers as a whole.

Figure A2

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Logarithm of the gross wage per day as a function of age.

Tables

Table 1

Pension benefit for a single male white-collar worker.

age	year	career length	gross wage	gross benefit	gross replacement rate	net replacement rate	net option value (€)	net peak value (€)	net ∆SSW	net PR	net itax
60	2000	40	47,811	15,763	0.330	0.519	59,255	−28,838	.	.	.
61	2001	41	49,534	16,600	0.335	0.522	42918	−23,449	−5,390	17,216	0.238
62	2002	42	50,758	17,512	0.345	0.529	27,929	−16,110	−7,339	14,984	0.329
63	2003	43	51,565	18,193	0.353	0.537	13,094	−8,680	−7,429	14,454	0.340
64	2004	44	52,512	18,856	0.359	0.543	0	0	−8,680	12,591	0.408

Table 2

Pension benefit for a single female white-collar worker.

age	year	career length	gross wage	gross benefit	gross replacement rate	net replacement rate	net option value (€)	net peak value (€)	net ∆SSW	net PR	net itax
60	2000	40	26,260	11,402	0.434	0.683	31,744	−23,272	.	.	.
61	2001	41	27,171	12,057	0.444	0.690	21,256	−20,234	−3,039	11000	0.216
62	2002	42	27,733	12,801	0.462	0.704	12,324	−15,236	−4,998	8,844	0.361
63	2003	43	28,193	13,029	0.462	0.702	6,461	−7,280	−7,956	5,712	0.582
64	2004	44	28,664	13,409	0.468	0.708	0	0	−7,280	6,098	0.544

Table 3

Pension benefit for a single male blue-collar worker.

age	year	career length	gross wage	gross benefit	gross replacement rate	net replacement rate	net option value (€)	net peak value (€)	net ∆SSW	net PR	net itax
60	2000	40	22,541	10,833	0.481	0.734	23,179	−24,162	.	.	.
61	2001	41	23,205	11,365	0.490	0.748	15,894	−19,531	−4,631	7,678	0.376
62	2002	42	23,489	11,963	0.509	0.768	10,245	−13,093	−6,438	5,536	0.538
63	2003	43	23,832	12,395	0.520	0.771	4,972	−6,662	−6,431	5,296	0.548
64	2004	44	24,128	12,840	0.532	0.790	0	0	662	4,690	0.587

Table 4

Pension benefit for a single female blue-collar worker.

age	year	career length	gross wage	gross benefit	gross replacement rate	net replacement rate	net option value (€)	net peak value (€)	net ∆SSW	net PR	net itax
60	2000	40	13,662	8,187	0.599	0.785	19,236	−13,706	.	.	.
61	2001	41	14,056	8,856	0.630	0.828	9,189	−15,512	1,806	10,302	−0.213
62	2002	42	14,285	9,438	0.661	0.861	4,466	−11,856	−3,656	4,642	0.441
63	2003	43	14,475	9,438	0.652	0.831	6,707	−1,405	−10,451	−2,299	1.282
64	2004	44	14,682	9,992	0.681	0.873	0	0	−1,405	6,563	0.176

Table 5

CELS benefit for a single male white-collar worker.

age	year	career length	gross wage	gross CELS benefit	gross future pension benefit	gross replacement rate	net replacement rate	net option value (€)	net peak value (€)	net ∆SSW	net PR	net itax
58	1998	38	44,546	24,138	18,856	0.542	0.708	52,268	−74,371	.	.	.
59	1999	39	45,680	24,704	18,856	0.541	0.704	46,317	−59,835	−14,536	6,366	0.696
60	2000	40	47,811	25,773	18,856	0.539	0.699	38,397	−47,241	−12,593	8,331	0.602
61	2001	41	49,534	26,646	18,856	0.538	0.696	28,432	−35,566	−11,676	9234	0.558
62	2002	42	50,758	27,317	18,856	0.538	0.694	19,486	−22,632	−12,933	7,715	0.626
63	2003	43	51,565	27,794	18,856	0.539	0.694	10,414	−10,276	−12,356	7,886	0.610
64	2004	44	52,512	28,527	18,856	0.543	0.698	0	0	−10,276	9,400	0.522

Table 6

CELS benefit for a single female white-collar worker.

age	year	career length	gross wage	gross CELS benefit	gross future pension benefit	gross replacement rate	net replacement rate	net option value (€)	net peak value (€)	net ∆SSW	net PR	net itax
58	1998	38	24,864	14,296	13,348	0.575	0.807	26,046	−53,426	.	.	.
59	1999	39	25,360	14,545	13,371	0.574	0.802	23,575	−42,988	−10,438	2,677	0.796
60	2000	40	26,260	14,998	13,401	0.571	0.797	19,485	−34,200	−8,787	4290	0.672
61	2001	41	27,171	15,464	13,411	0.569	0.792	14,065	−36,355	−7,946	5,163	0.606
62	2002	42	27,733	15,804	13,413	0.570	0.791	9,698	−16,871	−9,384	3,541	0.726
63	2003	43	28,193	16,108	13,413	0.571	0.792	4,787	−8,420	−8,451	4,312	0.662
64	2004	44	28,664	16,603	13,405	0.579	0.800	0	0	−8,420	4,072	0.674

Table 7

CELS benefit for a single male blue-collar worker.

age	year	career length	gross wage	gross CELS benefit	gross future pension benefit	gross replacement rate	net replacement rate	net option value (€)	net peak value (€)	net ∆SSW	net PR	net itax
58	1998	38	21,883	13,377	12,851	0.611	0.855	16,070	−52,090	.	.	.
59	1999	39	22,113	13,445	12,852	0.608	0.851	14,868	−41,673	−10,417	1,297	0.889
60	2000	40	22,541	13,707	12,851	0.608	0.850	12,369	−32,815	−8,858	2,618	0.772
61	2001	41	23,205	13,971	12,852	0.602	0.843	8,913	−24,901	−7,914	3,472	0.695
62	2002	42	23,489	14,266	12,846	0.607	0.846	6,104	−15,992	−8,909	2,166	0.804
63	2003	43	23,832	14,613	12,844	0.613	0.848	3,054	−7,985	−8,007	2,841	0.738
64	2004	44	24,128	15,243	12,840	0.632	0.866	0	0	−7,985	2,516	0.760

Table 8

CELS benefit for a single female blue-collar worker.

age	year	career length	gross wage	gross CELS benefit	gross future pension benefit	gross replacement rate	net replacement rate	net option value (€)	net peak value (€)	net ∆SSW	net PR	net itax
58	1998	38	13,155	9,624	9,992	0.732	0.938	0	0	.	.	.
59	1999	39	13,564	9,878	9,992	0.728	0.943	516	8,497	−8,497	−332	1.041
60	2000	40	13,662	9,966	9,992	0.729	0.941	971	17,026	−8,529	−562	1.071
61	2001	41	14,056	10,256	9,992	0.730	0.941	833	24,669	−7,643	290	0.964
62	2002	42	14,285	10,474	9,992	0.733	0.934	2,199	34,208	−9,539	−1,791	1.231
63	2003	43	14,475	10,693	9,992	0.739	0.925	3,488	43,365	−9,157	−1,545	1.203
64	2004	44	14,682	10,843	9,992	0.739	0.925	2,414	50,034	−6,669	771	0.896

Table 9

Simulation variants: average pension and CELS benefits over all choice years r

	Net benefits (after taxes and social contributions)					Gross benefits (before taxes and social contributions)
	white-collar		blue-collar			white-collar		blue-collar
	male	female	male	Female	x̅	male	female	male	female	x̅
	Single (section 6.3.1)
	Pension benefit
Rep. ratio	0.530	0.698	0.762	0.835	0.706	0.344	0.454	0.506	0.645	0.487
∆SSW	−7,210	−5,818	−6,041	−3,426		−9,476	−6,789	−6,889	−3,406
PR	14,811	7,913	5,800	4,802		36,598	18,799	14,457	9,760
Itax	0.329	0.426	0.512	0.422	0.422	0.207	0.268	0.324	0.263	0.265
	CELS benefit
Rep. ratio	0.699	0.797	0.851	0.935	0.820	0.540	0.573	0.612	0.733	0.614
∆SSW	−12,395	−8,904	−8,682	−8,339		−21,530	−13,110	−12,259	−9,060
PR	8,155	4,009	2,485	−528		21,579	10,990	7,925	3,447
Itax	0.603	0.689	0.777	1.068	0.784	0.499	0.544	0.607	0.725	0.593
	With partner without income of his or her own (section 6.3.2)
	Pension benefit
Rep. ratio	0.645	0.731	0.775	0.900	0.763	0.430	0.567	0.633	0.805	0.609
∆SSW	16,213	−10,912	−9,498	−4,429		−11,845	−8,486	−8,611	−4,257
PR	9,534	6,036	5,301	5,318		34,229	17,102	12,735	8,909
Itax	0.650	0.677	0.663	0.476	0.617	0.258	0.335	0.406	0.329	0.332
	CELS benefit
Rep. ratio	0.764	0.798	0.811	0.853	0.806	0.577	0.640	0.688	0.796	0.675
∆SSW	−19,372	−14,634	−13,257	−10,021		−23,646	−15,059	−14,190	−10,118
PR	4,781	1,507	951	−650		19,463	9,041	5,994	2,389
Itax	0.816	0.925	0.950	1.075	0.941	0.548	0.625	0.703	0.810	0.672
	Single, after a five-year shorter career (Section 6.3.3)
	Pension benefit
Rep. ratio	0.511	0.652	0.698	0.731	0.648	0.326	0.420	0.467	0.571	0.446
∆SSW	−6,766	−4,787	−5,453	−1,969		−8,490	−4,977	−6,037	−1,690
PR	15,255	8,944	6,387	6,259		37,584	20,611	15,309	11,476
Itax	0.309	0.350	0.463	0.241	0.341	0.185	0.196	0.284	0.130	0.199

Table 10

The effect of technical variants on the cost of postponing retirement: simulation variants for single workers: Averages over all choice years r.

	Net benefits (after taxes and social contributions					Gross benefits (before taxes and social contributions)
	white-collar		blue-collar			white-collar		blue-collar
	male	female	male	female	x̅	male	female	male	female	x̅
	Variant 1: Increase career length required for full pension entitlement (section 6.4.3.1)
	Pension benefit
Rep. ratio	0.523	0.690	0.746	0.818	0.694	0.337	0.447	0.497	0.633	0.478
∆SSW	−7,106	−5,351	−5,916	−2,604		−9,242	−5,855	−6,701	−2,388
PR	14,915	8,381	5,925	5,624		36,832	19,732	14,646	10,778
Itax	0.324	0.391	0.502	0.319	0.384	0.202	0.230	0.316	0.183	0.233
	Variant 2: Abolish post-retirement tax exemption + increase minimum pension benefit (Section 6.4.3.2)
	Pension benefit
Rep. ratio	0.464	0.591	0.647	0.893	0.649	0.344	0.454	0.506	0.773	0.520
∆SSW	−6,136	−4,842	−5,056	−3,537		−9,476	−6,789	−6,889	−4,087
PR	15,885	8,890	6,784	4,691		36,598	18,799	14,457	9,079
Itax	0.280	0.355	0.429	0.435	0.375	0.207	0.268	0.324	0.316	0.279
	CELS benefit
Rep. ratio	0.646	0.689	0.729	0.835	0.714	0.540	0.573	0.612	0.733	0.614
∆SSW	−11,712	−7,879	−7,605	−7,783		−21,530	−13,110	−12,259	−9,331
PR	8,838	5,034	3,562	28		21,579	10,990	7,925	3,176
Itax	0.569	0.610	0.680	0.996	0.784	0.499	0.544	0.607	0.747	0.599
	Variant 3: Equalise social contribution rate for CELS and pension beneficiaries(Section 6.4.3.3)
	CELS benefit
Rep. ratio	0.666	0.761	0.812	0.862	0.775	0.540	0.573	0.612	0.733	0.614
∆SSW	−11,847	−8,522	−8,310	−7,833		−21,530	−13,110	−12,259	−9,060
PR	8,703	4,392	2,857	−22		2,1579	10,990	7,925	3,447
Itax	0.576	0.660	0.744	1.00	0.746	0.499	0.544	0.607	0.725	0.593

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Mendeley

Activity rate of 55–65 year olds, and effective retirement age in Europe (European Community, 2003: 42–48).

The structure of the micro-economic pension model.

Wage per day for the categories of workers as a whole.

Logarithm of the gross wage per day as a function of age.

Pension benefit for a single male white-collar worker.

Pension benefit for a single female white-collar worker.

Pension benefit for a single male blue-collar worker.

Pension benefit for a single female blue-collar worker.

CELS benefit for a single male white-collar worker.

CELS benefit for a single female white-collar worker.

CELS benefit for a single male blue-collar worker.

CELS benefit for a single female blue-collar worker.

Simulation variants: average pension and CELS benefits over all choice years r

The effect of technical variants on the cost of postponing retirement: simulation variants for single workers: Averages over all choice years r.

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