Raw Data: Retirement Income Replacement Rates in the US vs. Other Rich Countries

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While Hillary Clinton and Bernie Sanders are finishing up their lovefest in New Hampshire, how about another chart comparing retirement in America to retirement in other rich countries? Don’t lie: you know you want it.

Here’s one that makes the US look a little worse than yesterday’s charts. It shows income replacement rates in all OECD countries: that is, the amount of income that retirees get compared to how much they earned when they were working. This is a very tricky number to compute because there are lots of different ways you can do it, and the OECD pension report spends several pages just outlining the various assumptions you can use. That said, here are their estimates for low-income workers when you include only public pensions like Social Security:

And here’s the same chart including all pension income, both public and private:

Once again, the United States relies more on private spending than most other countries. When you count only Social Security, the US looks pretty stingy, ranking seventh from the bottom for low-income workers. But when you include all sources of pension income, we look better than a majority of OECD counties—including famously generous ones like Belgium, France, and Germany.

Now, as I said, these numbers are tricky to compute, and in this case I’m fairly skeptical of them. The replacement rate for Social Security in the top chart looks way too low to me. Conversely, the replacement rate for all sources of pension income in the US looks too high. Neither number matches up to figures for low-income workers from places like the Congressional Budget Office and the Social Security Administration. But that may simply be because the OECD made different assumptions in their calculations.

In any case, this gives you a decent idea of how we stack up using simple income replacement rates as your metric.

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is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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