Does Departure from the Labour Market Equal Retirement? Why the Retirement Age is Only Part of the Story

Unemployed persons in Germany receive at least 60% of their last net salary in the form of unemployment benefit I (Arbeitslosengeld I or ALG I) and receive pension entitlements amounting to 80% of their last gross salary. Moreover, the maximum period of entitlement to unemployment benefit I increases with age. This raises the question of whether incentives are created to use unemployment as an "early pension".