Research Catalog

Title

Filling the Pension Gap [electronic resource]: Coverage and Value of Voluntary Retirement Savings / Pablo Antolín and Edward Whitehouse

Author

Antolín, Pablo.

Publication

Paris : OECD Publishing, 2009.

Details

Additional Authors

Whitehouse, Edward.

Description

33 p.; 21 x 29.7cm.

Summary

The current generation of workers can expect lower pension benefits in retirement than the current generation of pensioners. Private, voluntary pension savings will therefore play a greater role in providing for old age. This paper calculates the size of the "pension gap": the difference between the benefits from mandatory retirement-income provision and a target pension level. It then computes the amount that people would need to save to achieve the target. Data on coverage of private, voluntary pension schemes in a range of OECD countries are then presented. The paper also shows how coverage varies with age and earnings. The results show significant gaps in coverage, particularly among low earners and younger workers. The effect could be a resurgence of old-age poverty when these generations reach retirement. Data on contributions to private pensions show that these are, on average, at a level likely to fill the pension gap. Expanding coverage rather than raising contribution rates should therefore be the policy priority. Five policy options for increasing coverage are assessed: (i) mandating private pensions; (ii) "soft compulsion", which is automatic enrolment in private pensions but with an opt-out; (iii) facilitating access to the means for saving for retirement; (iv) preferential tax treatment of retirement savings; and (v), improving financial awareness.

Series Statement

OECD Social, Employment and Migration Working Papers, 1815-199X ; no.69

Uniform Title

OECD Social, Employment and Migration Working Papers, no.69.

Subject

Social Issues/Migration/Health

LCCN

10.1787/227200770711

OCLC

oecd-lib-000964

Author

Antolín, Pablo.

Title

Filling the Pension Gap [electronic resource]: Coverage and Value of Voluntary Retirement Savings / Pablo Antolín and Edward Whitehouse

Imprint

Paris : OECD Publishing, 2009.

Series

OECD Social, Employment and Migration Working Papers, 1815-199X ; no.69

OECD Social, Employment and Migration Working Papers, 1815-199X ; no.69.

Connect to:

http://dx.doi.org/10.1787/227200770711

Indexed Term

Social Issues/Migration/Health

Added Author

Whitehouse, Edward.

Other Standard Identifier

10.1787/227200770711 doi