Old age pensions across countriesStefanie König

Workshop of the project “Determinants of Retirement Decisions in Europe, the US and Japan”

01.-02.07.2015, MZES Mannheim

old age dependency ratio

United St

ates

Czech Rep

ublic

Netherl

ands

Switz

erlan

dSp

ain

United Kingd

omEst

onia

Denmark

Euro

pean Union

Austria

Swed

en Italy

German

yJap

an0

5

10

15

20

25

30

35

40

45

196019902012

INSTITUTIONAL CONTEXT

Data on old age pensions across countries and over time is provided by the “Social Citizenship Indicator Program“ (SCIP)

The research leading to these results has received support under the European Commission’s 7th Framework Programme (FP7/2013-2017) under grant agreement n°312691, InGRID – Inclusive Growth Research Infrastructure Diffusion.

Replacement rates for minimum (blue), standard (red) and full (green) pensions

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

2005

2010

2005

2010

1990

2010

austria denmark germany italy japan netherla sweden switzerl united k united s Czech Re Estonia Spain

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Difference between minimum and full pension replacement rates

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

1990

2010

2005

2010

2005

2010

1990

2010

austria denmark germany italy japan netherla sweden switzerl united k united s Czech Re Estonia Spain

0

0.1

0.2

0.3

0.4

0.5

0.6

Differences in replacement rates from 1990 to 2010 for 35 years of contribution (standard)

sweden japan switzerl denmark germany Spain netherla Czech Re united k italy united s Estonia austria

-0.3

-0.25

-0.2

-0.15

-0.1

-0.05

0

0.05

0.1

Old age pension benefits

19701975

19801985

19901995

20002005

0

20000

40000

60000

80000

100000

120000

140000

160000

Sweden

minimum pensionstandard pension APWfull pension

SEK

per y

ear

19701975

19801985

19901995

20002005

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

United States

minimum pensionstandard pension APWfull pension

US D

olla

rs p

er y

ear

Old age pension benefits

19701975

19801985

19901995

20002005

0

2000

4000

6000

8000

10000

12000

14000

16000

Germany

minimum pensionstandard pension APWfull pension

Euro

per

yea

r

19701975

19801985

19901995

20002005

0

20000

40000

60000

80000

100000

120000

140000

160000

Denmark

minimum pensionstandard pension APWfull pension

DKK

per y

ear

Correlation of standard replacement rates and effective retirement age (1970-2010)

0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1 1.250.0

55.0

60.0

65.0

70.0

75.0

R² = 0.234658410148604

men

standard replacement rate

effec

tive

retir

emen

t age

SPAIN

0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1 1.250.0

55.0

60.0

65.0

70.0

75.0

R² = 0.108232482231641

women

standard replacement rate

effec

tive

retir

emen

t age

SPAIN

R² = 0,2677 (without Spain)

…same results for 2010

0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 154.0

56.0

58.0

60.0

62.0

64.0

66.0

68.0

70.0

72.0

R² = 0.438636902307673

Correlation replacement rates and retirement age (men,

2010)

replacement rates

effec

tive

retir

emen

t age

0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 152.0

54.0

56.0

58.0

60.0

62.0

64.0

66.0

68.0

R² = 0.214042378576044

Correlation replacement rates and retirement age (women,

2010)

replacement rates

effec

tive

retir

emen

t age

Who is financing the old age pension?

austr

ia

denmark

germ

any

italy

japan

netherl

and

swed

en

switz

erlan

united ki

n

united st

a0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005

otheremployerstateindividual

austr

ia

denmark

germ

any

italy

japan

netherl

and

swed

en

switz

erlan

united ki

n

united st

a0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1990

otheremployerstateindividual