The Pensions strand of the Open Method of Coordination is governed by three main objectives - adequate pensions, sustainable pensions and modernised pensions - and its indicator portfolio is structured along these objectives.

First objective indicators - adequate pensions

"Ensure adequate retirement incomes for all and access to pensions which allow people to maintain, to a reasonable degree, their living standard after retirement, in the spirit of solidarity and fairness between and within generations"

Primary indicators

•  At-risk-of-poverty rate of elderly people, (65+)
•  Median relative income ratio of elderly people, (65+)
•  Aggregate replacement ratio (excluding other social benefits)

Secondary indicators

•  At-risk-of-poverty rate of elderly people, (60+, 75+)
•  Median relative income ratio of elderly people, (60+)
•  Inequality of income distribution - S80/S20 income quintile share ratio, elderly people, (65+)
•  Relative median at-risk-of-poverty gap of elderly people, (65+, 75+)
•  At-risk-of-poverty rate for pensioners
•  At-risk-of-poverty rate of elderly people by tenure status, (60+, 65+,75+)
•  Dispersion around the at-risk-of-poverty threshold of elderly people, (60+,65+,75+)

Second objective indicators - adequate pensions

"Ensure the financial sustainability of public and private pension schemes, bearing in mind pressures on public finances and the ageing of populations, and in the context of the three-pronged strategy for tackling the budgetary implications of ageing, notably by: supporting longer working lives and active ageing; by balancing contributions and benefits in an appropriate and socially fair manner; and by promoting the affordability and the security of funded and private schemes."

Primary indicators

•  Total Current Pension expenditure (% of GDP)
•  Employment rate of older workers
•  Duration of working life

Secondary indicators

•  Total expenditure on social protection (% of GDP)

Third objective indicators - modernised pensions

"Ensure that pension systems are transparent, well adapted to the needs and aspirations of women and men and the requirements of modern societies, demographic ageing and structural change; that people receive the information they need to plan their retirement and that reforms are conducted on the basis of the broadest possible consensus"

Primary indicators

•  Gender differences in the at-risk-of-poverty rate of elderly people
•  Gender differences in the relative median income ratio of elderly people
•  Gender differences in the aggregate replacement ratio

Secondary indicators

•  Gender differences in the relative median income ratio