Study reveals new insights into the relationship between income and health
Recent findings from a comprehensive study by the German Institute for Economic Research (DIW Berlin) shed new light on the link between income and health. The study suggests that both mental and physical health are closely linked to income, which has a direct impact on citizens' pension entitlements.
While pension policy has so far been based on the equivalence principle, which states that the level of pension depends on the contributions paid in, this assumption is now being questioned by DIW economists. The study shows that income is only one dimension of social inequality, and other factors such as Life expectancy and health play an equally important role.
Inequalities in pension policy
One of the most significant findings of the study is the income-dependent life expectancy, which undermines the equivalence principle of pension insurance. This means that people with low incomes tend to die earlier and therefore receive fewer pension entitlements. This inequality in pension policy has far-reaching consequences for the social security of the population.
The calculations are based on data from the DIW Berlin's longitudinal Socio-Economic Panel (SOEP) study, which covers the period from 1984 to 2021. These data provide detailed insights into the probability of death in different income groups between the ages of 55 and 76.
Comprehensive reassessment of pension entitlements required
The study results show that a reassessment of pension policy is urgently needed to ensure social justice. The close link between income, health and life expectancy suggests that a focus solely on contributions paid is not enough to ensure fair pension entitlements. It is recommended that low pension entitlements be upgraded in order to compensate for the inequalities in pension policy.
Overall, the DIW Berlin study makes it clear that pension policy urgently needs to be reformed in order to meet the current challenges in the area of social security. The link between income, health and pension entitlements requires a holistic approach in order to ensure fair and sustainable pension insurance for all citizens.
Source: nachrichten.ag
