New PDF release: Aging Societies: The Global Dimension

By Gary T. Burtless, Barry Bosworth

ISBN-10: 0585053650

ISBN-13: 9780585053653

ISBN-10: 0815710267

ISBN-13: 9780815710264

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Extra resources for Aging Societies: The Global Dimension

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But dependency rates do not necessarily indicate actual program costs because there are significant differences in the generosity of public pensions among the countries. For example, although the current old-age dependency rate is similar in Japan and the three European countries, the cost of the pension 5. There are some serious questions about the accuracy of these data. The United States is often cited for a low rate of household saving relative to Japan and Germany, but American retirees appear to derive a larger portion of their retirement income from the accumulation of private wealth.

In 1995 it provided a maximum pension of ¥65,000 a month at age 65 for a person who has contributed for forty years. It offers separate pensions to dependent wives of employees. The actual average first-tier pension was closer to ¥45,000, or about 12 percent of the average wage. Workers can retire as early as age 60 but will receive a reduced pension. The first-tier benefit amount is adjusted to reflect consumer price inflation. If real wages continue to rise, the first-tier pension will decrease over time relative to the economywide average wage.

But dependency rates do not necessarily indicate actual program costs because there are significant differences in the generosity of public pensions among the countries. For example, although the current old-age dependency rate is similar in Japan and the three European countries, the cost of the pension 5. There are some serious questions about the accuracy of these data. The United States is often cited for a low rate of household saving relative to Japan and Germany, but American retirees appear to derive a larger portion of their retirement income from the accumulation of private wealth.

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Aging Societies: The Global Dimension by Gary T. Burtless, Barry Bosworth


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