ABSTRACT
This chapter presents a microeconomic approach aiming to compare prospective pension benefits for workers on different levels of earnings in the 30 Organisation for Economic Co-operation and Development (OECD) countries. Earnings-related pension schemes also differ in the measure of pay used to calculate entitlements, which can have an important effect on the value of benefits. The chapter gives a summary of the structure, parameters and rules of OECD pension systems. It outlines the methodology of and assumptions for calculation of the indicators. The chapter presents the results for the indicators: pension replacement rates, relative pension values, and pension wealth. The basic pension in Japan, minimum pension in Mexico and the targeted scheme in the United States are also on the low side, providing benefits worth one fifth or less of average earnings. The relative pension level is best seen as an indicator of pension adequacy. It shows pension benefits relative to national average earnings, rather than relative to individual earnings.
