Feb 2, 2014

Elderly Pension Income Funding

One of the main issues in our aging-society is to achieve an adequate retirement income level for the elderly.

A recently published OECD report called 'Pensions at a Glance 2013' gives a detailed insight in how we are doing.

OECD's report analysis a lot lot of interesting 'pension income' and 'poverty-index' developments. In this blog we'll focus on the relatively income of elderly people as a percentage of the national mean income of the total population .

Relative incomes of people 65-years and older
Let's take a look at the relative incomes of people 65-years and older, per country, in the 'late 2000s' (2007-2010):

Although the OECD-average income level (86.2%) of elderly as a percentage of the national mean income of the total population of a country is (surprisingly?) quite high, there are still some countries, like Australia (65.4%) at the bottom where you wouldn't expect them.....

Elderly: Sources of Income
The next graph makes perfectly clear in which countries the elderly still have to work for the main part of their income.

A lot of countries where people don't have to work for their income depend on a substantial (often not capital funded) public pension system. They are 'at risk' as ageing increases in the next decades.

Relatively robust elderly income countries are countries like The Netherlands, Canada and Israel, where elderly people have a substantial part of their income funded by private pensions or non-pension saving returns.

For more interesting conclusions, download the OECD report.

- OECD Pensions at a Glance - Jantoo Cartoons