Page 34 - IDEA Study 3 2015 Duchodova studie

GRAPH 4.2 Percentage of Households with a Working Member - Single Women Percentage of Households with a Working Member - Single Men 100% 80% 60% 40% 20% 0% 100% 80% 60% 40% 20% N W0% HH age, HH cat.,working m. ___________________________________________________________ HH age, HH cat. S HH age, HH cat.,working m. ___________________________________________________________ HH age, HH cat. N W S E N W S W N W E N E N W E S S W S N N E SE S W E W E S NE W SE Source: Data SHARE Age group (years) Source: Data SHARE Age group (years) N Household Income Finally, we analyse the SHARE respondents' financial situations in terms of their total household income and their ability to manage that income. The SHARE questionnaire asks each respondent (i.e. each person aged 50+ and his/her partner) about their entire income during the preceding 12 months. The derived measure of the total household income includes (in annual terms): net income from employment/self-employment, income from old-age pensions, unemployment benefit, other social and welfare benefits, other income (rents) and lump-sum payments. The total household income equals the sum of the net (after tax) incomes of all household members. Because households differ in size, we derive the weighted net household income per member by dividing the total net household income by the number of consumer units in the household (as used in OECD statistics3). Index of Total Household Income The following graphs illustrate the household income on an index that relates the average weighted household income for each age band to the average income at age 50-54 (before retirement). For example, the average household income for a Czech couple aged 70-74 is around 30% lower than the average income of couples before they retire (aged 50-54). This is because older people's ability to secure income from other sources than pensions declines with age and their pensions also decrease due to indexation policies linking pensions to average wages, and cohort effects. The left hand panel of graph 4.3 provides summary information about the age development of incomes across all households. Total income at later ages decreases relative to the reference income at age 50-54 (before retirement). The most pronounced decreases are observed in the Czech Republic and the Nordic countries, 3 The first member has weight 1, every subsequent member has weight 0.5; a child under 13 has weight 0.3. 32