The pension system can affect people within the same generation differently,
depending on their socioeconomic status.
lower socioeconomic status
higher socioeconomic status
People born at the same time are all entitled to receive the
main public pension at the same normal retirement age.
lower socioeconomic status
retirement age
higher socioeconomic status
retirement age
=
This tends to advantage people of higher socioeconomic status:
on average, they live longer, so they receive pensions for more years.
They also spend more time in education, so they start working later.
At the same time, other rules advantage people of lower socioeconomic status.
The basic pension is the same for everyone, regardless of
earnings or taxes paid.
lower socioeconomic status
basic pension
higher socioeconomic status
basic pension
=
Furthermore, pension supplements are higher for people with low or no private or employer-based pension savings.
Finally, individuals with long work histories or reduced work ability
may qualify for early retirement.
lower socioeconomic status
basic pension
+ supplement
+ early retirement option
higher socioeconomic status
basic pension
In short
Advantages for lower socioeconomic status
Same basic pension for everyone, regardless of taxes paid
Higher supplements for those with low pension savings