Hello, dear readers of the Tyulyagin project! Today we will talk about pensions in different countries of the world. In the article you will learn what the size of the pension depends on and how the pension system in Russia is structured. Also here you will find a table with pension size in different countries of the world, that is, you will find out in which countries biggest pension in the world, and in which, on the contrary, it is the smallest. Also in the article you will find information about the retirement age in countries around the world as of 2021. Make yourself comfortable and enjoy reading!
How pensions are organized in Europe
The governments of many developing countries of the European Union are interested in ensuring that pensioners receive payments that are sufficient to meet all needs.
The main focus of many pension-related reforms in European countries is raising the retirement age.
There is a rational grain in this, because many older Europeans, regardless of their age, work, which means they have a stable source of livelihood.
Reference! Many employers prefer to employ people of retirement age rather than young workers, because older people, as a rule, have extensive experience and all the skills and knowledge necessary for effective work.
The standard of living of older people is affected by the following:
- minimum established amount of pensions;
- indexing pension provision taking into account inflation in the state;
- benefits for pensioners;
- retirement age. It depends on the average life expectancy, as well as on the consumer basket.
Average payout level
The pension system is best developed in the following countries:
- Danish . Denmark is considered a “Mecca” for old people. Citizens of other European countries want to work in Denmark in order to receive payments in the future, the average amount of which is 2.8 thousand dollars monthly.
- Finnish. The average payment in Finland is $1.9 thousand. The amount of pension benefits depends on the length of service and salary.
- Norwegian . The highest retirement age is set here (67 years). However, the amount of payments compensates for such a “shortcoming”. The standard of living in the Norwegian state is quite high, even taking into account the high taxes paid by workers and businessmen.
- Czech. Here you can receive a pension from the age of 58. The average payout is 1 thousand dollars.
- Germanic . About 25 percent of Germans receive pension benefits, the average amount of which is 850 euros. In addition, every pensioner can count on support from the state, which includes the opportunity not to pay for utilities.
- French . Here pensions depend entirely on length of service and salary. The French become pensioners at the age of 60.
Minimum and maximum retirement age
Before the reform, Russia held the lead in terms of the minimum retirement age. But even after raising this criterion to 65 years for men and up to 60 years for women, the indicator will be in the middle of the overall ranking at the level of Albania, Austria, Poland, Romania and Montenegro.
As of 2018, the bar in terms of retirement age was raised highest in Greece and Iceland - up to 67 years, this criterion is not much lower in Portugal, Ireland, the Netherlands and Italy - 66 years. Citizens of Turkey work the least - up to 58 years of age for women and 60 years for men, and citizens of Ukraine - up to 58.5 years for women and 60 years for men.
Rice. 1. Pensioners in Greece are forced to work until the age of 67
However, to obtain an objective assessment, a direct comparison of the age at which people retire in Europe is not enough. Plays a significant role:
- life expectancy of Europeans;
- life expectancy after retirement or “survival age.”
Table 1. Criteria for retirement age and life expectancy in Europe
| A country | Retirement age | average life expectancy | Survival age | |
| Men | Women | |||
| Greece | 67 | 67 | 79,5 | 12,5 |
| Iceland | 67 | 67 | 80,5 | 13,5 |
| Portugal | 66 | 66 | 78 | 12 |
| Ireland | 66 | 66 | 78 | 12 |
| Netherlands | 66 | 66 | 79,1 | 13,1 |
| Italy | 66 | 65 | 80,1 | 14,1–15,1 |
| Germany | 65 | 65 | 79,1 | 14,1 |
| Spain | 65 | 65 | 79,9 | 14,9 |
| Belgium | 65 | 65 | 79 | 14 |
| Cyprus | 65 | 65 | 78,1 | 13,1 |
| Denmark | 65 | 65 | 78,1 | 13,1 |
| Luxembourg | 65 | 65 | 79,2 | 14,2 |
| Great Britain | 65 | 65 | 78,8 | 13,8 |
| Bosnia and Herzegovina | 65 | 65 | 78,3 | 13,3 |
| Switzerland | 65 | 64 | 80,7 | 15,7–16,7 |
| Croatia | 65 | 62 | 75,1 | 10,1–13,1 |
| Serbia | 65 | 62 | 75,2 | 10,2–13,2 |
| Albania | 65 | 60 | 77,8 | 12,8–17,8 |
| Austria | 65 | 60 | 79,3 | 14,3–19,3 |
| Poland | 65 | 60 | 76,7 | 11,7–16,7 |
| Romania | 65 | 60 | 72 | 7–12 |
| Montenegro | 65 | 60 | 74,6 | 9,6–14,6 |
| Liechtenstein | 64 | 64 | 79,8 | 15,8 |
| Macedonia | 64 | 62 | 74,3 | 10,3–12,3 |
| Bulgaria | 64 | 61 | 73,2 | 9,2–12,2 |
| Hungary | 63 | 63 | 73,1 | 10,1 |
| Latvia | 63 | 63 | 71,8 | 8,8 |
| Finland | 63 | 63 | 78,8 | 15,8 |
| Lithuania | 63 | 62 | 74,6 | 11,6–12,6 |
| Estonia | 63 | 62 | 72,5 | 9,5-10,5 |
| Czech | 63 | 62 | 76,5 | 13,5–14,5 |
| Moldova | 63 | 58 | 71,5 | 8,5–13,5 |
| Slovakia | 62 | 62 | 75,1 | 13,1 |
| France | 62 | 62 | 81 | 19 |
| Malta | 62 | 62 | 79,3 | 17,3 |
| Norway | 62 | 62 | 79,9 | 17,9 |
| Sweden | 61 | 61 | 80,7 | 19,7 |
| Belarus | 61 | 56 | 72,1 | 11,1–16,1 |
| Slovenia | 60 | 59 | 76,7 | 16,7–17,7 |
| Ukraine | 60 | 58,5 | 71,2 | 11,2–12,7 |
| Türkiye | 60 | 58 | 73 | 13–15 |
| Russia | 60 | 55 | 72 | 12–17 |
| Russia from 2028 | 65 | 50 | 72 | 7–12 |
Source: AiF, Rosstat
As we can see, the average age when a happy European pensioner can enjoy a well-deserved vacation or active travel is 12–14 years.
Pensioners in prosperous Switzerland, France, Malta, Norway, Sweden live an order of magnitude longer – 17–19.7 years, but not due to early retirement, but because of high life expectancy.
Outsiders in this regard are Romania, Hungary, Latvia and Moldova, where the age of “survival” does not reach 10 years. And Russia, after the final increase in the retirement age, will be equal to Romania, that is, the average criterion will be 7–12 years.
Social Security for Retirees in the USA
The average pension in the United States of America is 1.2 thousand dollars. You can become a pensioner at the age of 62. At the same time, you can retire later, up to 67 years of age. The later a person stops working, the more money he will receive in the future. The average life expectancy in America is 78 years.
Reference! In total, 15.3 percent is withheld from a citizen’s salary for social needs. 50 percent of this amount is paid by the citizen himself, 50 percent by the employer.
In addition, America has many programs that allow citizens to save for their own life in old age. For example, there are special savings accounts that are exempt from taxation.
Political reform in Germany in the twentieth century
The pension system that Chancellor Bismarck established worked for more than a century. However, significant changes occurred in the 20th century. In 1953, Chancellor Adenauer came to power. He lowered the retirement age by 5 years. That is, people could qualify for state benefits when they reached 65 years of age.
Adenauer also developed the so-called solidarity agreement between generations. According to this agreement, a percentage of the workers' wages was regularly deducted in favor of the elderly and children.
In many European countries this pension system is still in effect.
What proportions of contributions to the German pension treasury apply in 2021? Entrepreneurs, like employees, are charged 50%.
The average pension in modern Germany is 782 euros. The maximum amount of this benefit is 2200 euros. The state also takes responsibility for paying utility bills for pensioners.
Pension in Australia
The state pays single elderly people approximately $0.5 thousand monthly. Families of 2 people receive 0.9 thousand dollars for two. The average salary in the state is 4.5 thousand dollars. Like other social benefits, pension benefits are indexed every year due to price increases.
Not all citizens receive the above amounts. If an Australian has a home worth more than $160,000, the pension benefit is reduced. For all other types of property there is a limit of 280 thousand dollars. A citizen may be completely left without pension payments if he is the owner of expensive property.
People who have large incomes tend not to go beyond the legal limit. Of course, what is important to them is not so much the pension itself as the benefits for pensioners.
Supply in China and Japan
A distinctive feature of the Chinese state’s pension system is that agricultural workers do not receive any financial support.
Only managers, civil servants and factory employees are entitled to receive a pension in China . Males begin to receive payments at 60 years old, females at 50. Women who worked as managers become pensioners at 55 years old.
In general, despite the significant economic recovery that the state has shown over the past 30 years, most issues regarding pensions remain unresolved. The average pension payment in the Chinese state is only $80. This situation is due to the large number of old people in China; this nation is recognized as aging.
During his working life, a citizen transfers 11 percent of his own salary to the state. In this case, 4 percent are deducted automatically, and the remaining 7 percent is contributed by the hiring company.
To acquire the opportunity to obtain a basic pension, you must work in a state-owned company for more than 15 years.
In Japan, things are completely different. The average pension payment in Japan is approximately $700. This makes it possible for older Japanese people not to lack money and live a comfortable life. This amount is enough for food, for making utility bills, and for vacation.
Reference! You can become a pensioner in Japan at age 65. In addition, you can start receiving a pension earlier, from the age of 60. However, in this case, the amount of payments will be reduced by 25 percent. On the contrary, if you become a pensioner at age 70, the amount of payments will increase by 25 percent.
According to statistics, Japan has the highest life expectancy. The number of Japanese people who are over 100 years old is more than 60 thousand people. The average life expectancy in Japan is 84 years.
Experts believe that healthy eating helps Japanese people live long. They eat a lot of rice, soy, and fish. Also, when becoming a pensioner, a Japanese citizen does not stop living actively. You can meet pensioners from Japan in any part of the world.
Pension in France
The French pension system is based on two principles: “pension savings insurance” (the pension is paid from the funds that a person saves during his working life) and “solidarity” (the pension is paid from contributions from working fellow citizens).
Individuals in liberal professions and small entrepreneurs pay 16.35% to the pension fund. Most employees pay the same amount, with the employer contributing half.
The pension in France is 50% of the average salary calculated over the last eleven working years.
Recently, the French government, represented by Prime Minister Jean-Marc Ayrault, presented a version of pension reform. This is the third pension reform in the last decade. The reform is aimed at reducing the pension system deficit (7 billion euros). Moreover, according to forecasts, in 2021 the deficit will be 20.7 billion euros. But the system is likely to balance out by 2040 thanks to the current rise in the birth rate.
In 2010, N. Sarkozy raised the retirement age from 60 to 62 years, which caused demonstrations and strikes. The trade unions promised the current president a similar wave of protests. Business managed to avoid direct tax increases and achieve a gradual increase in contributions. The rate of the main tax that replenishes the pension fund is today only 7.5% for the working population. According to the Ayrault reform, the increase in contributions over the next 4 years will lead to a small overall increase (by 0.3 percentage points, or 4.5 euros per month for an employee with a minimum wage) by 2021. Starting from 2015, it is planned to introduce allowances for employees who worked in heavy industries.
Hollande keeps his election promise: despite the latest demands of the European Union, the French government did not raise the retirement age. True, the Ayrault reform changes the length of service required to receive a full pension: now you need to work for 41.5 years, and by 2035 it will take 43 years. The new rules will affect those born after 1973. As a result, the government will still force the majority of citizens to work even after 62 years of age.
Comparative table of pensions in countries around the world
Here are the figures for the size of pensions in the Russian Federation and European countries as of 2021:
| A country | Average pension, dollars |
| Russia | 285 |
| Germany | 1200 |
| Spain | 1190 |
| Sweden | 833 |
| Italy | 583 |
| Hungary | 400 |
It becomes clear that in European countries pensions are much higher than in Russia. Even in Hungary, older people receive more than in the Russian Federation, to say nothing of countries such as Germany and Spain. However, it must be taken into account that prices in European countries, as well as tax contributions, are quite high, especially when compared with the Russian Federation.
