Breaks in Employment, Part-time Work and their Importance for Women's Life-time Income

Life-time income is determined by pay level and the years of employment. Breaks in gainful employment, as they are common with women, mainly in the context of care obligations, cause not just income losses in the short time but reduce life-time income as well. Thus, an employment break of just one year within the first four years in order to care for the children may reduce income from work by 1 percent, otherwise the pension reduction is around 2.8 percent. Retirement income is higher by at least 10 percent if there is a significant part-time job (30 hours) instead of 20 hours. The number of insurance years is becoming more and more important for the income situation in retirement.