ABSTRACT
In Germany there was no actuarial adjustment before the 1992 reform legislation, and until recently most employees still retired under provisions that did not include actuarial adjustment. The magnitude of the combined effect of early retirement under the disability programme in Germany. The official social security normal retirement age in Germany is 65. Subsequent analysis of the project country teams estimated how much the retirement age would change if social security provisions were changed, based on within-country analysis of the determinants of retirement. The finding that social security provisions penalize work, and thus distort retirement decisions, is a critical foundation for understanding the effects of social security and in particular the implications of system reform. The provisions that induce withdrawal from the labour force themselves suggest the 'indicators' that can be used to monitor the degree to which social security provisions foster early retirement. The disability benefits at 57 are essentially the same as normal retirement benefits at age 65.
