Comparing Pension Policies of OECD Countries

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Abstract:

This part starts with an overview of the different schemes that together make up national retirement‐income systems. A summary of the key features of pension systems ‐ the parameters and rules ‐ follows. The main empirical results, consisting of eight indicators that are calculated using the OECD pension models, are then presented. The first two indicators are both replacement rates; that is, the ratio of pension benefits to individual earnings. These are given in gross and net terms, taking account of taxes and contributions paid on earnings and on retirement incomes. There are also two sensitivity analyses of the gross replacement rate: gross pension replacement rates with entry at age 25; and gross pension replacement rates with different rates of return.

Document Type: Review Article

Publication date: May 1, 2007

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