Saving for retirement and the role of private pension provision in retirement readiness

This chapter examines the potential role of private pensions in the retirement readiness of working-age individuals in selected OECD countries. A description of the methodology used is followed by a look at the potential importance of private pensions in total pension income at retirement. The chapter then addresses several policy questions on whether working-age individuals would have sufficient pension income at retirement to reach certain poverty thresholds to be at least as well-off as the cohort already retired and to maintain a certain level of their standard of living at retirement.The analysis herein also identifies population subgroups that may rely less on private pension provision at retirement and those subgoups that are at greatest risk of having a low pension income. The chapter finally looks at the potential impact of housing wealth, different economic conditions and labour market exit ages on the potential role of private pension provision in the retirement readiness of working-age individuals.