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Gross Pension Replacement Rates: Public and Private Schemes

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Private pensions play a large and growing role in providing for old age. This is illustrated with calculations of gross pension replacement rates that have been separated out between public and private sectors. The OECD average for replacement rates of an average earner from public schemes alone is 42%, compared with 57% with mandatory private pensions included. When voluntary private pensions, under typical rules, are added, the average replacement rate is 64% for an average earner.

Document Type: Review Article

Publication date: March 1, 2011

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