Logically, the share of household income linked to work goes down with age. The income of households whose reference person is 75 and over only come from work on average for 2% in Germany, 3% in France and 5% in the United Kingdom.
Differences in the Sources of Income Between Seniors and Younger People
These graphics show the switch between the income perceived through salaried activity and income received after retirement. We can observe that 25% of the income of 55+ people come from salaried activity in Germany and France. It is slightly more in the United Kingdom, with 36%. For under 55s, close to 80% of the income come from salaried activity. The trend is similar in all countries.
The seniors’ Sources of Income by Age Bracket
The analysis of sources of income by country reflects the various retirement pension schemes in place. In Germany and France, retirement pensions come mainly from public transfers: retirement pensions and welfare payments. While in the United Kingdom, most of the annuities and retirement pensions (36%) come from private investments.
The share of income linked to investments (Whether financial or real estate investments) has been increasing with the age of the household as older seniors are more often owners of properties or financial assets.
We have observed that the British, and, to a lesser extent, the Germans, retire later than the French: the share of income connected to work remains higher until there are 70 or even 75.
For more information on retirement of seniors in Europe, read the following article:
– In France, the median annual income barely decreases during retirement
– How old are Europeans when they receive their first retirement pension?
Clicking on the following link for all the data: Sources of household income, according to the age of the reference person in Germany, France and the United Kingdom
Source: Seniosphère Conseil
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