The privatization of retirement income? Variation and trends in the income packages of old age pensioners

Article abstract:

The aim of this article is to investigate the changing balance between public and private components in the income packages of old age pensioners in a selection of nine OECD countries. Four waves of data from the Luxembourg Income Study databank are used to analyse variation across countries and across time in the public/private mix of retirement income. The article seeks to address two main questions: (a) is there a general trend towards a stronger reliance on private income provision and, perhaps, a trend towards convergence in the balance between public and private income components? (b) is there evidence of a tendency for substitution/crowding out between public and private income components, and hence a tendency for cross-national convergence in the relative income position enjoyed by old age pensioners - despite variation in the generosity of national pension systems?