Sweden Finland Austria

Retirement
Pension schemes are very important where public expenditures and the distribution of
income between the generations are considered, especially because an ageing of the
population will take place in many countries (including the 7 European countries and
Canada in this study) in the coming decades.
This study only deals with public pension schemes, implying that the comparisons between
the countries can be only partial. Private pensions and/or company based pensions are
important in many countries, especially in those countries where the public pension
schemes are not so generous. Company pension schemes are important in the Netherlands,
Great Britain and Canada, and labour market pension schemes are under gradual imple-
mentation in Denmark. Negotiated pensions (avtalspension) are usual in Sweden, they are
not included here.
For this element of social security too, there is a substantial variation among the 8 coun-
tries studied. Important criteria for characterization include:
What is the formal age of retirement?
Does the pension scheme allow flexible retirement?
Are all citizens eligible for pensions from the scheme or the basic part of it?

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Is the pension dependent on former work and income or is it a ’flat rate’?
Is the level of the pension dependent on being married or single?
Is the pension means tested?
Is there an ’additional’ public pension scheme?
The categorization according to these criteria of the public pension schemes in the 8
countries is shown in table 2.11.

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Table 2.11.
Characteristics of public pension schemes in 8 countries, 1997.
DK
S
FIN
A
Basic public pension scheme
Formal pension age
67
65
65
60/65
1)
Flexible retirement
No
Yes
Yes
Yes
Eligible groups
All
All
All
Employees,
Self-employed
Pension dependent on
work history and income
No
No
No
Yes
Pension dependent on
marital status
Yes
Yes
Yes
No
Means testing