Saturday, December 19, 2015

Latest OECD data on pension qualification and affordability

Summarised by the US Social Security department:

"The report presents a number of aging-related statistics for the OECD member countries, which include the following:

In 32 of the 34 OECD member countries, the fertility rate is below the replacement level.

Average life expectancy at age 65 in the 2010–2015 period is 21.8 additional years for women and 17.4 additional years for men and is expected to reach 25.8 years and 21.9 years, respectively, in the 2060–2065 period.

The average number of expected years in retirement has increased from 11 for men and 15 for women in 1970 to 18 and 22, respectively, in 2014.

The old-age dependency ratio (the population aged 65 or older divided by the population aged 20–64) is projected to nearly double from the current 28 older persons for every 100 working-age persons to 35 older persons by 2025 and to 55 older persons by 2075.

The share of older workers aged 55–64 has risen from 48 percent in 2004 to 56 percent in 2014.
The average effective age for leaving the labor market is 64.4 for men and 63.1 for women.

To counter these trends and the financial strain they put on public pension systems, the report notes that many countries have raised the statutory retirement age and introduced measures that discourage early retirement. By 2054, according to current legislation, 15 of the 34 OECD member countries will have retirement ages older than 65 (compared with 8 member countries in 2015)."

I wonder if New Zealand will be one by 2054?

1 comment:

Anonymous said...

I wonder if New Zealand will be one by 2054?

with any luck, NZ will have no state (i.e. taxpayer) pension by 2054 - or hell, by 2016!

All if would take is just one finance minister who understood primary school mathematics.