Pension

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.

List of indicators Data Source
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+)  Table and graph   Eurostat/ EU-SILC

Median relative income ratio of elderly people, (65+)

 Table and graph   Eurostat/ EU-SILC
Aggregate replacement ratio (excluding other social benefits)  Table and graph   Eurostat/ EU-SILC
Change in projected theoretical replacement ratio for base case 2004-2046 accompanied with information on type of pension scheme (DB, DC or NDC) and changes in projected public pension expenditure 2006-2046)  -  EPC/ AWG
Secondary indicators
At-risk-of-poverty rate of elderly people, (60+, 75+)    Eurostat/ EU-SILC
Median relative income ratio of elderly people, (60+)  Table and graph   Eurostat/ EU-SILC
Aggregate replacement ratio (incl. other social benefits)  Under preparation Eurostat/ EU-SILC
Inequality of income distribution - S80/S20 income quintile share ratio, elderly people, (65+)  Table and graph   Eurostat/ EU-SILC
Relative median at-risk-of-poverty gap of elderly people, (65+, 75+)  Table and graph  Eurostat/ EU-SILC
At-risk-of-poverty rate for pensioners  Table and graph   Eurostat/ EU-SILC
At-risk-of-poverty rate of elderly people by tenure status, (60+, 65+,75+)  Table and graph   Eurostat/ EU-SILC
Dispersion around the at-risk-of-poverty threshold of elderly people, (60+,65+,75+)  Table and graph   Eurostat/ EU-SILC
Context indicators
Composition of income by source and by income quintile for people (60+, 65+ and 75+)  Under preparation Eurostat/ EU-SILC
Second objective indicators - sustainable 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)    Eurostat/ ESSPROS
Employment rate of older workers   Eurostat/ LFS
Duration of working life   Eurostat/ LFS
Projections of pension expenditure, public and total, 2004-2050 (% of GDP) - EPC/ AWG
Secondary indicators
Total expenditure on social protection (% of GDP)    Eurostat/ ESSPROS
Decomposition of the projected increase in public pension expenditure (% of GDP) - EPC/ AWG
Context indicators
Old-age dependency ratio, current and projected Under preparation  Eurostat/ other
Evolution of life expectancy at birth and at ages 60 and 65 by gender (current and projected)  Under preparation  
Pension system dependency ratio (Number of pensioners relative to contributors, current and projected up to 2050.  -  EPC/ AWG
Contribution to public and private pension schemes (Pension contributions to public pension schemes as a share of GDP, current and projected to 2050)  -  EPC/ AWG
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  Table and graph    Eurostat/ EU-SILC
Gender differences in the relative median income ratio of elderly people  Table and graph    Eurostat/ EU-SILC
Gender differences in the aggregate replacement ratio   Table and graph     Eurostat/ EU-SILC
Secondary indicators
Gender differences in the relative median income ratio   Table and graph   Eurostat/ EU-SILC

* Abbreviations

EC: European Commission
EPC/AWG: Economic Policy Committee working group on Ageing Population
Eurostat/Demography: Demography data collected by Eurostat
Eurostat/ESPROSS: European System of integrated Social Protection Statistics
Eurostat/ LFS: European Union Labour Force Survey
Eurostat/EU-SILC: EU Statistics on Income and Living Conditions
Eurostat/SHA: System of health accounts data
OECD-EC: Organisation for Economic Cooperation and Development and European Commission