Research

We estimate the effect of additional pension benefits on mortality outcomes by exploring the two eligibility criteria of a German pension subsidy program for low-wage workers. Using novel administrative data, we find that eligibility leads to a 2-month delay in age at death (censored at 75). Survey evidence suggests that additional pension income improves both mental and physical health. In addition, individuals feel less financially constrained and are more optimistic about their future. Heterogeneity analysis suggests that the results are mainly driven by men.