49 advantage was even reversed, as male annuitants not only had access to full benefits at age 62, but also were granted a subsidy out of the fund to replace benefits from the first pillar.

Another striking feature is the difference between single and married men. Due to the uniform conversion rate, married men get a higher payoff generated by the present value of anticipated survivor benefits. The reported difference _underestimates_ the true magnitude of the advantage for married men for two reasons: Firstly, the computations ignore mortality differences between married and non-married individuals. As Figure 17 shows, married men have a considerably longer expected life-span than single men (see also below). Secondly, married men can claim additional benefits for minor children (or children still in education) when reaching retirement.<sup>47</sup>

||**Table 12 Money's Wor**<br>|**th Ratios for S**<br>|**econd Pill**<br>|**ar Retirees**<br>||
|---|---|---|---|---|---|
|Year|Annuitant|SNB Yield<br>Curve|5-ye<br>Rate|ar Bond<br>MWR|Fixed<br>3.5%|
|2000|female single<br>male single<br>male married|1.069<br>0.890<br>1.025|3.80%|1.117<br>0.917<br>1.068|1.155<br>0.943<br>1.103|
|2001|female single<br>male single<br>male married|1.134<br>0.937<br>1.086|3.13%|1.211<br>0.981<br>1.154|1.160<br>0.947<br>1.108|
|2002|female single<br>male single|1.151<br>0.953|2.73%|1.275<br>1.023|1.165<br>0.951|
||male married|1.102||1.212|1.112|
|2003|female single<br>male single|1.242<br>1.020|1.61%|1.475<br>1.152|1.170<br>0.955|
||male married|1.187||1.393|1.116|
|2004|female single<br>male single<br>male married|1.206<br>0.991<br>1.152|2.36%|1.346<br>1.071<br>1.276|1.175<br>0.959<br>1.120|
|2005*|male single<br>male married|1.099<br>1.302|1.42%|1.186<br>1.440|0.963<br>1.124|
|2005|female single (62), 5.454%<br>male single, 5.835%<br>male married,5.835%|1.039<br>0.891<br>1.055|1.42%|1.076<br>0.961<br>1.167|0.893<br>0.780<br>0.911|

MWR calculations for pooled gender survival tables as a function of the underlying risk free rate profile since 2000. For all computations, the common conversion factor is 7.2 percent, the female retirement age is 62, and the age difference of married spouses at retirement is 3.7 years. The last three lines (2005, in blue) depict the MWRs using the lowest quoted conversion rates to be applied on the non-mandatory capital stock. The computations are based on a constant nominal interest rate of 3.5 percent. Joint annuities are for men only Mortality rates are updated by improvement rates from SFSO. * = no females to retire at statutory retirement age.

Source: Authors’ calculations Given these numbers, it is surprising, that single men do not take the capital option 47 Retired men with young children get a considerably higher income than younger families as children benefits do not exist for working individuals. Although no official statistics exist, evidence from a number of pension funds show that young children are predominantly registered for high income individuals. Together with differential mortality based on economic well-being, these additional benefits for children increase the true MWR for the latter substantially above the values reported in our tables.