Retirement-income regimes are diverse and often involve a number of different programmes. Classifying pension systems and different retirement-income schemes is consequently difficult. The taxonomy of pensions used here consists of two mandatory “tiers”: an adequacy part and an earnings-related part. Voluntary provision, be it individual or employer-provided, makes up a third tier.

Basic and minimum pensions along with social assistance are defined as the first layer of protection for the elderly within the pension system. They make up the first tier of the OECD’s taxonomy of pension systems, which was set out in the previous indicator of the architecture of national pension schemes.

The second-tier of the OECD’s taxonomy of retirement-income provision comprises mandatory earnings-related pensions. Key parameters and rules of these schemes determine the value of entitlements, including the long-term effect of pension reforms that have already been legislated.

The rules for eligibility to retire and withdraw a pension benefit are complex and often reflect conflicting objectives. This is all mirrored in the different criteria for pension benefit withdrawal in different schemes. In 2016 the OECD average normal pension age was equal to 64.3 years for men and 63.7 years for women across all schemes for an individual retiring in 2016 and assuming labour market entry at age 20.

Future normal and early retirement ages have been increasing. Following the changes presented herein and assuming labour market entry at age 20 in 2016 the normal retirement age will increase to 65.8 for men and 65.5 for women on average across all OECD countries against 64.3 and 63.4 years, respectively, in 2016.