On behalf of the Federal Ministry for Families, Elderly, Women and Youth (BMFSFJ) MIKMOD examines issues regarding old-age security. This includes forecasts of reform proposals such as the expansion of child raising periods for children born before 1992 into the statutory pension scheme or the introduction of the so-called Lebensleistungsrente which means an increase of the pension by the state if the pension itself is too low to be able to live with. In order to solve these issues, the complex regulations of the old-age security and its entangled social benefits are translated into microsimulation models. We quantify financial and distributional effects of reform proposals by means of suitable data sources, in particular individual data of the German pension insurance (Deutsche Rentenversicherung) and the socio-economic panel (SOEP).
In addition, our team publishes research studies on current and relevant topics in the field of old-age security. We focus on the connection between old-age security and nursing care. For example, one of our past projects examined the gender pension gap which is the relative pension gap between men and women and conducted two studies on this topic: The first one calculated the actual magnitude of the gender pension gap with the help of detailed data on retirement income from the study “Alterssicherung in Deutschland” (ASID). The study differentiated between region, family status, educational qualification, birth date and the fact whether the person at interest has children. The second one addresses the question of how much of the personal background of women and men is being accounted for in the gender pension gap. Our team conducted an Oaxaca-Blinder decomposition for women and men between the age of 65 and 70 with the ASID data. The analysis shows that the number of working years and educational level are the two factors that matter most for the gender pension gap. In another more recent study, we implemented a connection between the periods of nursing relatives and the expected effects on pension. This investigation was not solely based on individuals but examined macroeconomic effects.