Hello, dear readers of the Tyulyagin project! Today we will talk about pensions in different countries of the world. In the article you will learn what the size of the pension depends on and how the pension system in Russia is structured. Also here you will find a table with pension size in different countries of the world, that is, you will find out in which countries biggest pension in the world, and in which, on the contrary, it is the smallest. Also in the article you will find information about the retirement age in countries around the world as of 2021. Make yourself comfortable and enjoy reading!
What determines the size of the pension?
In most developed and civilized countries of the world, every citizen has the right to receive a pension upon reaching a certain age threshold or retirement age. Despite the presence of a pension, its size is not the same and may differ both in different countries of the world and within one particular country. The main factors that influence the size of pensions and pension payments are:
- Length of a person's work experience
- average salary
- Average pension in the country and the country's pension system
In addition to the size of the pension, an important parameter is the retirement age. The retirement age for men and women may differ in individual countries. As a rule, women in such countries retire somewhat earlier than men.
Comparison of Russian pensions with pensions in other countries
In this article we will figure out what the average pension is in Russia. How similar charges are made in other countries of the world. And in conclusion, let’s try to compare the Russian pension system with foreign ones.
Pension in Russia
The concept of pension is regular state cash payments to a citizen of the Russian Federation in the manner prescribed by law.
Pensions in Russia are calculated for the following categories of the population:
Men over the age of 60, women over 55 years old. For disabled people. Persons who have lost their breadwinner as a result of various reasons. By length of service (applies to military personnel, doctors, police officers, prosecutors, and tax inspectors). Pension for special services to the state. Today in Russia there are three main types of pensions: labor, funded and state pensions. An insurance (labor) pension can be assigned for old age, as a result of the loss of a breadwinner and disability.
Funded pension – determined depending on the amount of pension savings. The latter are taken into account at the request of the pensioner on an individual personal account. Russians born in 1967 and later have the right to a funded pension.
A state pension is a cash payment that compensates citizens for wages lost as a result of the termination of the federal military program or due to length of service. This type of pension is divided into:
social; for loss of a breadwinner; by old age; on disability; for long service. The size of the pension is affected by length of service, salary and pension contributions of citizens.
Average pension size For calculation
The average pension takes into account the indicator of actually paid pension payments in the country. It is determined for each type of pension separately. As of April 1, 2015, the Russian Pension Fund established the following average pension indicators: Old-age labor pension - 13,900 rubles. Disability pension – 7994 rubles. Survivor's pension – 8040 rubles. Pension for disabled military personnel - 28,490. Social pension - 8,300 rubles. The average pension received by a WWII veteran is 30,257 rubles per month. Moscow average pension is 14,000 rubles.
Average pension in the world All highly developed countries of the world have their own funded system. As a rule, about 40% of the population participates in it. In some countries (USA) this figure is even higher and approaches 80%. Let us briefly compare the indicators of average pensions in the world.
Greece
The average pension in Greece in 2015
was $573 (RUB 32,468.59). The basic part of the accrual is $396 (RUB 22,439.02). Interest is also calculated on this amount, depending on the seniority of the pensioner. The basic part is the same for all pensioners, regardless of which funds they were insured with. Greeks are among the richest pensioners in Europe.
Ukraine
Pension reform in Ukraine is now at the reform stage.
The current system provides for contributions from wages to the pension fund - 34% (this figure is the highest in the world). According to this formula, the employer is paid 32%, and the employee the remaining 2%. The average pension in Ukraine
in 2015 was $52 (1,100 hryvnia or 2,946.54 rubles). This indicator is due to the difficult military situation in the country and the fall of the national currency.
Germany
As of 2015, the average pension in Germany was $1,400 (RUB 79,329.88). If a pensioner was unemployed during his working period and the pension calculated for him does not reach the subsistence level, the state pays the difference. The state also covers utility costs for pensioners.
Belarus
The average pension is $175 (RUB 9,916.24). The ratio of the average pension size to the average salary in the country is 38%.
USA
The average American pension
is around $1,200 (RUB 67,997.04). This is 50% of the average salary. Employees contribute 7.5% of their income to the pension fund + 7.5% is paid additionally by the employer. Non-government level employees (businessmen, lawyers) pay the entire 15% on their own. The standard of living for ordinary retired Americans may seem low. But everything is compensated by low prices on the consumer market.
Kazakhstan
The Kazakhstan Pension Fund has determined the average pension for 2015 at $250 (RUB 14,166.05). The country ranks second after Russia in terms of pensions (if we compare the countries of the former USSR). Unlike Russia, the retirement age in Kazakhstan is 2 years higher.
Armenia
The country still has a pay-as-you-go pension system. But there are plans to introduce a funded fund. Armenia is characterized by low pensions. For 2015, the average was less than $100 (RUB 5,666.42).
Bulgaria
The average pension in Bulgaria is $140 (RUB 7,932.99). This is the lowest figure in Europe.
Georgia
The average pension in the country is no more than $60 (RUB 3,399.85). Low pensions are due to the difficult economic situation in the country.
Latvia and Lithuania
The Baltic countries stand slightly apart from the CIS countries. Their pensions are closer to European ones. The calculation takes place according to a three-tier system - accumulative, distribution and private pension funds. The economic crisis and labor shortage could not but affect the pension system. Governments are planning to raise the retirement age. Today, the average pension in Latvia is about 335 dollars (18,982.51 rubles), the amount of the Lithuanian pension is 245 dollars (13,882.73 rubles).
Estonia
The average pension in the country is $255 (RUB 14,449.37). The figure is slightly higher than the Lithuanian one.
Finland
The average pension in the country is 58% of wages. On average, it’s about $1,982 (RUB 112,317.51). The country's pension fund does not set a maximum payment, how much a citizen earns, everything is calculated. Pensions are high, which allows Finnish pensioners to buy real estate in neighboring countries.
Conclusion Based on the results of the article, we highlight the main points: The average pension in Russia in dollar equivalent is $246. Which is one of the highest indicators compared to the CIS countries. Latest statistics
years demonstrates that the Russian pension system works more efficiently than in neighboring countries. Reforms of the pension system in Russia have made pensioners richer, but compared to the USA, Germany, and Finland, Russians receive an order of magnitude less.
Pension in Russia
The Russian pension system has recently undergone changes and now the retirement age has become higher. If just a couple of years ago the retirement age was 60 for men and 65 for women, then starting in 2021 the transition to a new retirement age has begun - for men from 65 years, and for women from 60 years.
There are three main types of pensions in Russia: insurance. social and cumulative. In addition, for certain categories of citizens of the Russian Federation, a disability pension can be paid, based on length of service, in connection with the loss of a breadwinner and for special distinctions before the fatherland.
As of 2021, the average pension in Russia is about 15,000 rubles. Its size, in addition to length of service and average salary, will also depend on the region. The amount of the insurance pension in the Russian pension system is based on the calculation of individual pension coefficients (IPC). The pension amount is annually indexed to inflation. It is important to understand that the size of the minimum wage (minimum wage) does not directly affect the size of the pension. However, the pension cannot be lower than the minimum wage. Otherwise, the pensioner is paid additional payments to bring the pension level up to the minimum wage.
In Canada
In Canada, all residents of the country who have lived there for at least 10 years after reaching adulthood are paid an old age pension (The Old Age Security). It is paid to almost everyone without exception, and its size almost does not depend on accumulated experience and other conventions that are relied on in other countries.
The maximum OAS amount is about $500 per month. At the same time, although it is taxed, its amount is revised four times a year in order to protect the income of pensioners from inflation. It forms the basis for other types of pensions.
For example, non-working pensioners or those receiving low incomes are entitled to receive a federal guaranteed income supplement, the amount of which depends both on the income of the citizens themselves and on the income of their husbands/wives. Usually it is no more than $800.
In Canada, as in Russia, deferring retirement up to five years guarantees a gradual increase of 0.6%. Thus, until you need your pension, it grows without your direct participation.
Canadians can afford to retire later than expected, with an average life expectancy of 82 years and an expected retirement age of 65 years.
Table of pension amounts and retirement ages in countries around the world
The size of the pension and retirement age can vary greatly from country to country. Thus, the largest pensions are observed in developed countries of Europe, as well as in oil-producing countries of the Middle East.
The retirement age in a given country is often based on life expectancy, but in some countries, despite the increase in life expectancy, they are in no hurry to raise the retirement age.
In the table below, I provided statistics for 60 countries of the world on the average pension in dollars or euros, which I then converted for convenience into the ruble equivalent at the exchange rate for February 2021. The highest and largest pensions in ruble terms are currently in Denmark (193,200 rubles), Kuwait (189,230 rubles) and the UAE (176,276 rubles). The smallest average pension in India is only 10 dollars, or 635 rubles, and for the majority of the Indian population it is even less.
| A country | Pension amount | Pension amount in rubles | Retirement age (M/F) | Life expectancy, years |
| Denmark | 2800 euros | 193200 | 67/67 | 80 |
| Kuwait | $2980 | 189230 | 55/50 | 75 |
| UAE | $2776 | 176276 | 60/55 | 78 |
| Austria | 2269 euros | 156561 | 65/60 | 81 |
| Switzerland | $2046 | 129921 | 65/64 | 84 |
| Sweden | 1697 euros | 117093 | 65/65 | 82 |
| Finland | 1632 euros | 112608 | 63/63 | 82 |
| Saudi Arabia | $1600 | 101600 | 65/60 | 75 |
| South Korea | $1600 | 101600 | 60/60 | 83 |
| Norway | $1584 | 100584 | 67/67 | 82 |
| Iceland | $1550 | 98425 | 67/67 | 82 |
| Netherlands | 1300 euros | 89700 | 66/66 | 82 |
| Germany | 1260 euros | 86940 | 65/65 | 80 |
| Japan | $1366 | 86741 | 65/65 | 85 |
| Israel | $1350 | 85725 | 67/62 | 82 |
| Türkiye | $1329 | 84391.5 | 60/58 | 78 |
| Italy | 1140 euros | 78660 | 66/66 | 82 |
| USA | $1150 | 73025 | 67/67 | 78 |
| France | 1000 euros | 69000 | 62/62 | 81 |
| Canada | $1066 | 67691 | 65/65 | 81 |
| Mexico | 1000 dollars | 63500 | 65/65 | 75 |
| Belgium | 865 euros | 59685 | 65/65 | 81 |
| Australia | $933 | 59245.5 | 67/67 | 82 |
| Spain | 850 euros | 58650 | 65/65 | 82.5 |
| Great Britain | $828 | 52578 | 66/66 | 80 |
| Ireland | 743 euros | 51267 | 66/66 | 83 |
| Cyprus | 740 euros | 51060 | 65/65 | 81 |
| Greece | 697 euros | 48093 | 67/67 | 81 |
| Brazil | 700 dollars | 44450 | 65/60 | 74 |
| Portugal | 550 euros | 37950 | 65/65 | 80 |
| Poland | $538 | 34163 | 67/67 | 76 |
| Estonia | 483 euros | 33327 | 63.5/63.5 | 79 |
| Slovakia | 460 euros | 31740 | 62/62 | 78 |
| Singapore | $431 | 27368.5 | 62/62 | 83 |
| Hungary | $420 | 26670 | 65/65 | 75 |
| Lithuania | 374 euros | 25806 | 63.6/62.3 | 76 |
| Hungary | 400 dollars | 25400 | 62/62 | 75 |
| Croatia | 366 euros | 25254 | 65/62 | 79 |
| New Zealand | $385 | 24447.5 | 65/60 | 82 |
| Bulgaria | $323 | 20510.5 | 64/61 | 74 |
| Serbia | 220 euros | 15180 | 63/58 | 72 |
| Kazakhstan | $226 | 14351 | 63/58,5 | 72 |
| Russia | $223 | 14163 | 60/55 | 71 |
| Chile | $198 | 13662 | 65/60 | 80 |
| China | 145-210 dollars | 12700 | 60/55 | 75 |
| Belarus | $197 | 12509.5 | 61/56 | 71 |
| Iran | $192 | 12192 | 65/60 | 77 |
| Romania | $190 | 12065 | 63/58 | 75 |
| Azerbaijan | $176 | 11176 | 63.5/60.5 | 71 |
| Czech | $109 | 7521 | 63/63 | 79 |
| South Africa | $109 | 6921.5 | 60/60 | 57 |
| Moldova | 106 dollars | 6700 | 63/58 | 72 |
| Ukraine | 90 dollars | 5715 | 60/58.5 | 71 |
| Tajikistan | $87 | 5523 | 63/58 | 71 |
| Kyrgyzstan | $83 | 5280 | 63/58 | 71 |
| Armenia | $82 | 5200 | 63/63 | 75 |
| Argentina | $79 | 5016.5 | 65/60 | 80 |
| Uzbekistan | $55 | 3492.5 | 60/55 | 72 |
| Georgia | 40 dollars | 2540 | 65/60 | 75 |
| India | 10 $ | 635 | 58/58 | 66 |
The size of the average pension as a percentage of the average salary in the country
In addition to the actual size of the pension, an important indicator is the ratio of the size of the pension to the average salary. So the highest pensions in relation to the average salary are in Croatia, Turkey and the Netherlands. In all three countries they exceed the national average salary. In the Netherlands by 1%, in Turkey by 2% and in Croatia by 29%. The smallest pension for this indicator is in South Africa (the pension is equal to 18% of the salary) and the UK, where the pension is only 29% of the salary on average. As for Russia, its pension size is approximately 39% and it is among the top five outsiders from the countries studied in the infographic below.
Countries where there are no old-age pensions
Unfortunately, old-age pensions, to which most of the world's inhabitants are accustomed, still do not exist everywhere. Every country in the world has one type of pension or another. However, there are a number of countries where there is no traditional old-age pension, these are:
- Honduras
- Vietnam
- India
- Iraq
- Kenya
- China
- Niger
- Nigeria
- Pakistan
- Thailand
- Tanzania
- Suriname
- Philippines
These countries do not have old-age pensions, but there are other benefits: disability pensions and other benefits.
And that’s all for today about the size of pensions and retirement age in different countries of the world. Share the article with friends and subscribe to new articles by e-mail. Good luck and see you again on the pages of the Tyulyagin !
