This sixth edition of Pensions at a Glance provides a range of indicators for comparing pension policies and their outcomes between OECD countries. The indicators are also, where possible, provided for the other major economies that are members of the G20. Four special chapters () provide deeper analysis of recent pension reforms, the role of first-tier pensions, the impact of short and interrupted careers and the sensitivity of future replacement rates to parametric changes.

This sixth edition of Pensions at a Glance marks the tenth anniversary of the OECD’s flagship series on pension systems and retirement incomes. Ten years of scrutiny of member and G20 countries’ pension systems and policies, ten years of assessing and predicting workers’ pension entitlements, and ten years of recommending reforms that lead to more financially sustainable pay-as-you-go pensions and also respond to citizens’ need for stable and adequate incomes in old age.

This edition of Pensions at a Glance reviews and analyses the pension measures enacted or legislated in OECD countries between September 2013 and September 2015. It provides an in-depth review of the first layer of protection of the elderly, first-tier pensions, across countries and assesses the impact of short careers on pension entitlements. This edition analyses also the sensitivity of future replacement rates to parametric changes. As in past editions, a comprehensive selection of pension policy indicators is included as well as profiles of the pension systems for all OECD and G20 countries.

This chapter sets out the most important elements of pension reform in the 34 OECD countries between September 2013 and September 2015. It updates and extends the analysis from the 2013 edition of OECD Pensions at a Glance which examined pension reforms from January 2009 to September 2013. The time period analysed here has been characterised by sluggish economic growth and increasing government debt. Countries have responded by measures aimed at limiting public pension expenditure while also addressing adequacy concerns in rapidly ageing societies.

This chapter examines the role of first-tier benefits within OECD and G20 countries. It concentrates on the three main components of first-tier pensions: basic, minimum and means-tested old-age social assistance payments. The structure of the first-tier pension systems including eligibility rules are first detailed. Then the level of the benefits as a proportion of average earnings is compared across OECD countries and studied in relation to old-age poverty rates. The chapter also highlights the other forms of assistance that are available for retirees including rent or health. This chapter analyses the implications of indexation policies for first-tier benefits levels and for public spending, given population ageing, depending on how age thresholds on first-tier pensions are adjusted.

This chapter assesses the impact of shorter, more fragmented careers on the pension entitlements from mandatory schemes taking into account all pension components including pension credits and other redistributive mechanisms in pension systems. The analysis focuses on delayed labour market entry and career interruptions related to childcare and unemployment.The analysis shows that with slightly more than a 1% drop in old-age pension for every year without a job on average, pension systems play a key role in offsetting the potential losses in retirement income due to delayed or interrupted employment. In the absence of any redistribution, the pension would fall by 2‑2.5% based on the economic assumptions used in the OECD model. Pension credits and other redistributive components of pension systems while not being able to fully offset the contribution gaps related to delayed or interrupted employment, are therefore effective instrument to boost earnings-related pensions. The effects vary widely across countries and depend on the periods covered, the pensionable earnings used during these periods, and the provision of other redistributive tools in pension systems.The results also highlight that pension systems are not typically designed to offset all kinds of income shocks which affect individual life courses. The increasing diversity of work paths requires a more comprehensive and integrated approach to the challenges faced by individuals through effective labour market, education, family and pension policies.

This chapter examines how changes made to each economic parameter affect the theoretical replacement rate estimations. The analysis also compares the new baseline economic assumptions to those used in previous editions of the publication before finally contrasting these new results with country-specific assumptions based on the level of economic development.