International Comparison of Pension Levels
In December 2017, the OECD published an extensive survey of pensions in its different members states and the G20 countries. The biannually published report Pensions at a Glance compares, among other things, the pension level and the structure and financing of pensions.
The OECD measures the replacement rate of pensions under the assumption that a person’s working life extends from age 20 to the national retirement age (68 years in Finland). In the comparison of the replacement rate of pensions, the future pension of a Finnish employee with an average income is slightly below the OECD average when supplementary pensions, which are part of the total pension provision in many countries, are included in the comparison. The OECD average pension amounts to 58.7 per cent of the pre-retirement wage. The equivalent rate in Finland is 56.6 per cent. The replacement rate for low-income wage earners is below the OECD average (56.6% vs. 70.3%) and higher among the high-income wage earners (56.6% vs. 54.4%). The Finnish replacement rates have increased slightly compared to the 2015 comparison due to, among other things, the rising retirement age.
Gross pension replacement rates
Source: OECD Pensions at a Glance 2017