Statistically, the financial satisfaction of European pensioners is higher, on average, than that of other population groups. This observation is contradictory since the income of pensioners is lower than that of others, writes researcher Liisa-Maria Palomäki (Finnish Centre for Pensions) in the Data Impact Blog of UK Data Service.
Pension Indicators 2018
The Replacement Rate
The pension replacement rate is defined as depicting the earnings-related pension percentage share of the earnings level before retirement of a person who has retired on an earnings-related pension. The earnings-related pension includes all pensions in one’s own right paid as earnings-related pensions. The earnings level has been determined two and three years before the pension contingency year, based on earnings received. The replacement rate for wage earners was slightly lower than that of the self-employed. The divergence was also smaller than for the self-employed. In 2017, the replacement rate of the wage earners was 58 per cent on average and the median was 57 per cent.
The income satisfaction paradox among pensioners in Europe
Pension System in Graphs and Figures
Download the slideshow or use it via SlideShare. Earnings-related Pension System in Graphs and Figures includes key information of the Finnish earnings-related pension system.
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