Replacement Rate Archives - Pension Policy International

04SepSeptember 4, 2026

Ranked: How Much Pensions Replace Your Salary by Country

How much of your paycheck would a pension replace in retirement? Depending on the country, the answer ranges from more than 80% to less than 20%. This graphic ranks countries by their projected gross pension replacement rate, based on data from the OECD. The rate compares pension benefits with pre-retirement earnings, with both measured before taxes and contributions. Estimates are for an average earner entering the workforce at age 22 in 2024 and include mandatory public and private pensions, but exclude...

September 4, 2026

NewsReplacement Rate

15NovNovember 15, 2024

How Mexico’s reformed pension system is improving workers’ retirement security

Earlier this year, Mexico’s senate approved the creation of a new pension fund to help provide more retirement security for low-income citizens. The reform aims to ensure pensioners receive 100 per cent of their last monthly salary up to roughly 16,777 Mexican pesos (US$975), which is the average monthly wage for workers affiliated with the Mexican Social Security Institute. “Congress approved this change to the pension system, which basically established a new welfare pension fund,” says Pedro Trejo, retirement director at...

November 15, 2024

NewsMexico, Pension Reform, Replacement Rate

17JulJuly 17, 2024

UK. CDC benefits may be 50% greater than those offered by DC, says LCP

The expected benefits offered by collective defined contribution (CDC) schemes could be 50% greater than those offered by defined contribution (DC) schemes, research from Lane Clark & Peacock (LCP) finds. The consultancy examined 2,500 simulations looking at a 43-year-old saver beginning a 25-year career, with the assumption of a 12% annual contribution rate. Its analysis compared the expected retirement pension as a proportion of the final salary for a typical CDC scheme and DC scheme and found CDC benefits could...

July 17, 2024

NewsCDC, Replacement Rate, UK

10AprApril 10, 2024

The country with the most generous retirement in the world

The UK state pension notoriously pays a meagre income that barely covers the basic cost of living in retirement. Even those who receive the full £11,500 a year face a shortfall of almost £3,000 on what is required for a ‘minimum’ standard of living, according to pension industry guidelines. But are British pensioners really any worse off than their counterparts in Europe and around the world? And just how generous are state pension schemes in other countries? With the help of pensions firm...

April 10, 2024

NewsPension design, Replacement Rate, UK

06FebFebruary 6, 2024

Mexico’s president wants to guarantee people pensions equal to their full salaries when they retire

Mexico’s president said Monday he will propose guaranteeing people pensions equal to their full salaries at the time they retire, something done by no other country, not even those much richer than Mexico. It was among a raft of 20 constitutional reforms that President Andrés Manuel López Obrador has almost no hope of getting passed in the eight months he has left in office, but which could be part of a bid to attract voters in the June 2 presidential...

February 6, 2024

NewsMexico, Pension Reform, Replacement Rate

24JanJanuary 24, 2024

The Ins and Outs of Final Salary Pensions

How do you envision your golden years? For many, it means traveling or just relaxing on sun-kissed beaches, free of the daily grind. Financial security, however, is crucial to a truly idyllic retirement. The golden ticket to that blissful state used to be a final salary pension, but unfortunately, it no longer exists. Today, the pension landscape has radically changed. In place of final salary plans, defined contribution plans like 401(k)s have become more common. As of November 2023, 22% of non-retirees...

January 24, 2024

NewsDefined Benefit, Pension design, Replacement Rate, Sustainability

06OctOctober 6, 2023

Replacement Rates and the Retirement Crisis

By Andrew G. Biggs In 2014, the annual Social Security Trustees Report removed measures of Social Security replacement rates, which represent Social Security retirement benefits as a percentage of pre-retirement earnings. The Trustees expressed concerns that the Social Security Administration’s (SSA) actuaries’ methodology produced results that differed meaningfully from other common approaches. In 2023, the Social Security Trustees returned replacement rates to the report, without changes to the SSA methodology or discussion of their decision. The SSA replacement rate methodology produces...

October 6, 2023

Adequacy, Articles2023, Replacement Rate, Retirement Planning, Social Security, US

23AugAugust 23, 2022

Ghana: Pension Scheme Provides More Reward – SSNIT DG

The Director General of the Social Security and National Insurance Trust (SSNIT), Dr John Ofori-Tenkorang, has argued that the pension scheme provided more reward to clients than they invest during their days of active service. He lauded the scheme as generous and said although workers contributed 11 per cent of their basic salary, the SSNIT scheme guaranteed members up to 60 percent of the average of their best three years' salaries and paid them monthly pensions till they were no...

August 23, 2022

News2022, Ghana, Pension design, Replacement Rate

12AugAugust 12, 2022

The Vanguard Participant Saving Rate Index

By Jeffrey W. Clark & Jean A. Young Saving rates are fundamental to retirement wealth accumulations. In this paper, we assess whether Vanguard defined contribution plan participants are saving optimally in their current workplace retirement plan. ● We find that 7 in 10 defined contribution plan participants are saving at rates that would enable them to attain a 65% replacement rate in retirement. Saving rates include both the employee elective contributions and any employer contributions. ● We find that a modest increase...

August 12, 2022

Books, Savings2022, Income, Occupational Pensions, Pension design, Replacement Rate

14JulJuly 14, 2022

SSNIT reveals huge disparity among pensioners: Highest pension is GH¢142,000, while lowest is GH¢300 monthly.

The top ten highest paid pensioners in Ghana receive between GH¢142,567.90 to GH¢42,187.83 every month whilst the lowest on the scheme receive between GH$300 and above, the Social Security and National Insurance Trust (SSNIT) has revealed. The Social Security and National Insurance Trust (SSNIT or the Trust) is a statutory public institution charged under the National Pensions Act, 2008 (Act 766 as amended by Act 883) with the administration of Ghana's Basic National Social Security Scheme. Its mandate is to cater...

July 14, 2022

News2022, Equality, Ghana, Income, Replacement Rate

September 2026

Ranked: How Much Pensions Replace Your Salary by Country

November 2024

How Mexico’s reformed pension system is improving workers’ retirement security

July 2024

UK. CDC benefits may be 50% greater than those offered by DC, says LCP

April 2024

The country with the most generous retirement in the world

February 2024

Mexico’s president wants to guarantee people pensions equal to their full salaries when they retire

January 2024

The Ins and Outs of Final Salary Pensions

October 2023

August 2022

Ghana: Pension Scheme Provides More Reward – SSNIT DG

The Vanguard Participant Saving Rate Index

July 2022

SSNIT reveals huge disparity among pensioners: Highest pension is GH¢142,000, while lowest is GH¢300 monthly.