REAL index

The so-called REAL index (stands for: pension and old-age security index) is a statistical survey by the fund company Fidelity in order to objectively map the pension situation of Germans at the start of retirement. For this purpose, all three pillars of old-age provision - statutory, company, private - as well as other sources of income, such as inheritance , were taken into account.

concept

Previous studies on the supply situation of Germans are based on assumptions and subjective surveys. The REAL index differs from this by specifically calculating the pension gap for Germans for the first time. The calculation of the pension gap does not only refer to the statutory pension, but also includes all pension measures.

Definition of REAL index

The REAL index sets the calculated monthly gross household income after retirement in relation to the calculated last monthly gross household income before retirement (median).

Survey of the REAL index

The study is based on personal interviews in households with at least one employed person and on capital market calculations. The age of 65 was assumed to be the retirement age.

In 2010, employed persons between the ages of 20 and 65 were surveyed representative of the population according to age, gender and professional position (household basis). The current gross household income as well as all activities undertaken to provide for old age were analyzed: statutory pension insurance, civil servant benefits, company pension, capital-forming and unit-linked pension and life insurance, building society savings, fund savings plans and assets, direct investments (e.g. shares, pensions), bank products (e.g. Savings plans / deposits), real estate and additional sources of income (e.g. inheritances).

With the help of an econometric capital market model, the gross household income was calculated immediately before and after retirement (before taxes). Due to the frequently changing tax framework, which cannot be forecast and therefore cannot be included in the projections, the calculations are based on gross amounts.

Results of the study

According to the calculations, working Germans will have an average of 56 percent of their last gross household income after retirement. The pension gap for German citizens is therefore 44 percent.

Further results:

• Even those who make additional private or company provisions for their old age (94 percent of those surveyed) have to accept major restrictions.
• The respondents expect a pension level of 70 percent, i.e. that is, they overestimate their pension situation.
• A low level of care runs through all strata of the population, regardless of income level, educational qualification, marital status or year of entry into the profession.
• There are only significant differences between the occupational groups: civil servants will be in a much better position financially than other occupational groups in old age and will be able to maintain their standard of living almost 100 percent.

Occupational group	REAL index in%
Self-employed	44
senior employees	55
Middle employees	56
Workers	53
Officer	93

Reading example: After retirement, civil servants will have 93 percent of the last monthly gross household income available before retirement.

Reception of the REAL index

The publication of the study sparked a large public discussion ("shock study") and also attracted attention and controversy at the political level. Interest groups also intervened in the discussion, for example the German Association of Officials (dbb) criticized the study. The approach of calculating the pension status of Germans for the first time taking into account all three pillars of old-age provision, despite some criticism of the methodology, met with a largely positive response.

criticism

In terms of content, the underlying calculation model of a pure pre-tax analysis was criticized after the study was published. For example, the REAL index does not take into account the fact that the tax rate for retirees is usually falling or that part of the statutory pension will still be tax exempt in future .

swell

1. ↑ The pension gap keeps widening in old age. ( Memento of the original from July 16, 2007 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. In: Bild.de, October 31, 2005. 
2. ↑ Germans are threatened with large shortages in old age. in: Berliner Zeitung online, April 7, 2007.
3. ^ Only officials without worries in: manager-magazin.de, April 13, 2007.