Editorial Flexibility or the comeback of early retirement?

167 Pages·03.834 MB·English

by  coll.

Pensions at a Glance 2017
OECD anD G20 inDiCatOrs
OECD’s biennial report on the pension systems across OECD and G20 countries. Each edition opens with an
overview comparing pension policies of OECD countries and recent reforms. This is followed by at least one
Pensions at a Glance 2017
thematic chapter and a range of indicators including pension projections for today’s workers.
The 2017 edition of Pensions at a Glance highlights the pension reforms undertaken by OECD countries over
the last two years. Moreover, one special chapter focuses on flexible retirement options in OECD countries
OECD anD G20 inDiCatOrs
and discusses people’s preferences regarding flexible retirement, the actual use of these programmes and the
impact on benefit levels.
This edition also updates information on the key features of pension provision in OECD countries and provides
projections of retirement income for today’s workers. It offers indicators covering the design of pension
systems, pension entitlements, the demographic and economic context in which pension systems operate,
incomes and poverty of older people, the finances of retirement-income systems and private pensions.
Individual country profiles, detailing the design of the pension system in each country, are available
at http://oe.cd/pag.
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Consult this publication on line at http://dx.doi.org/10.1787/pension_glance-2017-en. at
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isbn 978-92-64-28749-5
81 2017 68 1 P
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Pensions at a Glance
2017
OECD AND G20 INDICATORS
ThisworkispublishedundertheresponsibilityoftheSecretary-GeneraloftheOECD.The
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Pleasecitethispublicationas:
OECD(2017),PensionsataGlance2017:OECDandG20Indicators,OECDPublishing,Paris.
http://dx.doi.org/10.1787/pension_glance-2017-en
ISBN978-92-64-28749-5(print)
ISBN978-92-64-28750-1(PDF)
ISBN978-92-64-28751-8(Epub)
Series:OECDPensionsataGlance
ISSN1995-4026(print)
ISSN1999-1363(online)
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FOREWORD
Foreword
T
hisseventheditionofPensionsataGlanceprovidesarangeofindicatorsforcomparingpension
policiesandtheiroutcomesbetweenOECDcountries.Theindicatorsarealso,wherepossible,provided
for the other major economies that are members of the G20.Two special chapters (Chapters1 to2)
provideadeeperanalysisofrecentpensionreformsandflexibleretirementopportunitieswithinOECD
countries.
Thisreportwasprepared,underthegeneralsupervisionofGabrielaRamos,OECDChiefofStaff
andSherpatotheG20,bythepensionsteamintheSocialPolicyDivisionoftheOECDDirectoratefor
Employment,LabourandSocialAffairs:BoeleBonthuis,HervéBoulhol,MaciejLisandAndrewReilly.
Nationalofficials–particularlydelegatestotheOECDWorkingPartyonSocialPolicyandmembersof
the OECD pension expert group– provided invaluable input to the report. For OECD countries, the
resultsoftheOECDpensionmodelshavebeenconfirmedandvalidatedbynationalauthorities.
Chapter1on “Recent pension reforms” was written by Boele Bonthuis. Chapter2entitled
“Flexible retirement in OECD countries” was written by Boele Bonthuis and Andrew Reilly. The
indicators in Chapters3 to7 were computed by Andrew Reilly. The indicators related to private
pensionswereprovidedbyRomainDespalinsandStéphaniePayetfromtheOECD’sprivate-pensions
unit in the Directorate for Financial and Enterprise Affairs. Hervé Boulhol led the team and was
responsible for revising and enhancing these chapters. Chapter2 was edited by Alexander Pick.
MarlèneMohierpreparedthemanuscriptforpublication.
The report benefited from extensive comments by Monika Queisser, Head of the Social Policy
Division, especially in Chapter2.We are grateful to many national officials and colleagues in the
OECDSecretariat,notablyPabloAntolin,ManuelFlores,ChristianGeppert,MaciejLis,MariusLüske,
TomokoOnoda,StéphaniePayet,MarkPearson,StefanoScarpettaandAnneSonnet,fortheiruseful
comments.Itisajointprojectco-financedbytheEuropeanCommissionandtheOECD.
PENSIONSATAGLANCE2017:OECDANDG20INDICATORS©OECD2017 3

TABLEOFCONTENTS
Table of contents
Editorial–Flexibilityorthecomebackofearlyretirement? ...................... 9
Executivesummary......................................................... 11
Chapter1.Recentpensionreforms ............................................ 15
1.1.Introduction ........................................................ 16
1.2.Settingthescene .................................................... 19
1.3.Recentpensionreforms .............................................. 21
1.4.Conclusion ......................................................... 28
Notes.................................................................. 29
References ............................................................. 30
Databasereferences..................................................... 30
Annex1.A1.PensionreformoverviewdecidedbetweenSeptember2015
andSeptember2017..................................................... 31
Chapter2.FlexibleretirementinOECDcountries................................ 41
2.1.Introduction ........................................................ 42
2.2.HowdopeopleworkandretireinOECDcountries?....................... 43
2.3.Whatoptionsexistforflexibleretirement?.............................. 51
2.4.Youcan’talwaysmakethechoicesyouwishedfor ....................... 64
2.5.Conclusion ......................................................... 67
Notes.................................................................. 69
References ............................................................. 71
Databasereferences..................................................... 73
Annex2.A1.Actuarialneutralityandfinancialincentivesinpensionsystems.... 74
Annex2.A2.Mainrulesofpensionpenalties,bonusesandcombiningwork
andpensions........................................................... 78
Chapter3.Designofpensionsystems ......................................... 85
Architectureofnationalpensionsystems .................................. 86
Basic,targetedandminimumpensions .................................... 88
Mandatoryearnings-relatedpensions...................................... 90
Currentretirementages.................................................. 92
Futureretirementages................................................... 94
Chapter4.Pensionentitlements............................................... 97
Methodologyandassumptions ........................................... 98
Grosspensionreplacementrates.......................................... 100
Grossreplacementrates:publicvsprivate,mandatoryvsvoluntaryschemes ... 102
Taxtreatmentofpensionsandpensioners ................................. 104
PENSIONSATAGLANCE2017:OECDANDG20INDICATORS©OECD2017 5
TABLEOFCONTENTS
Netpensionreplacementrates............................................ 106
Netpensionreplacementrates:mandatoryandvoluntaryschemes............ 108
Grosspensionwealth.................................................... 110
Netpensionwealth ..................................................... 112
Grosspensionreplacementratesfordifferentearningsprofiles ............... 114
Chapter5.Demographicandeconomiccontext ................................. 117
Fertility................................................................ 118
Lifeexpectancy......................................................... 120
Old-agedependencyratio................................................ 122
Employmentratesofolderworkers........................................ 124
Effectiveageoflabourmarketexit......................................... 126
Expectedyearsafterlabourmarketexit.................................... 128
Chapter6.Incomesandpovertyofolderpeople................................. 131
Incomesofolderpeople.................................................. 132
Old-ageincomepoverty.................................................. 134
Averagewage........................................................... 136
Chapter7.Financesofretirement-incomesystems.............................. 139
Mandatorypensioncontributions ......................................... 140
Publicexpenditureonpensions........................................... 142
Pension-benefitexpenditures:publicandprivate............................ 144
Long-termprojectionsofpublicpensionexpenditure ........................ 146
Chapter8.Privatepensionsandpublicpensionreservefunds.................... 149
Coverageofprivatepensionplans......................................... 150
Structureofprivatepensionsystems ...................................... 152
Assetsinprivatepensionplansandpublicpensionreservefunds ............. 154
Allocationofprivatepensionassetsandofassetsinpublicpension
reservefunds........................................................... 156
Investmentperformanceofprivatepensionsplansandpublicpension
reservefunds........................................................... 158
Operatingcostsofprivatepensionsystemsandfeeschargedtomembers ...... 160
DBfundingratios ....................................................... 162
6 PENSIONSATAGLANCE2017:OECDANDG20INDICATORS©OECD2017
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