Julian Schmied

Aug 17, 2023 | onlinelibrary.wiley.com | Christian Dudel |Julian Schmied

1 INTRODUCTION An indicator that is commonly used to measure pension incomes is the replacement rate, which is defined as post-retirement income relative to pre-retirement income. In the literature, there exists a wide range of benchmark values for the replacement rate, with values between roughly 60 and 100 per cent. A value of 70 per cent is often used, but like many other benchmark values it is not based on empirical data but set ad hoc and based on plausibility.