How U.S. Social Security Benefits Compare to Other Developed Nations (They’re Worse)

24/7 Wall St. Insights

• U.S. social security benefits lag behind the pension systems of other OECD countries.
• Americans contribute more of their income to social security, receive fewer benefits, and retire later than in other OECD countries.
• The average U.S. male pensioner receives the equivalent of 7.4 times his last year of income throughout his retirement — below the OECD average of 10 times income.
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In the last several weeks, the Social Security Administration has become the latest target of DOGE’s sweeping cost-cutting efforts. The Trump administration announced that it would reduce the SSA by about 7,000 employees – 12% of its workforce – and close six of its 10 regional offices. While Trump has vowed not to “touch” social security payments, his administration has instituted several service changes to the program, including the discontinuation of paper checks in favor of direct deposit or other digital payment options.

A lot of social security policy debate centers around how to fund a growing retiree population with the contributions of a shrinking working-age population. The United States already ranks behind a majority of OECD countries in the generosity of social security benefits, and would fall even further if benefits are reduced.

The average male pensioner in the United States, for example, receives the equivalent of 7.4 times his last year of income throughout his retirement – far below the average pension payout of 10.1 times income among OECD nations. The average annual pension payment replaces 50.4% of income in the U.S., compared to the 61.4% OECD average replacement rate. Yet Americans also contribute more of their incomes to social security – 21.9% for the average U.S. earner, compared to a 16.6% average OECD contribution rate – and retire later than most workers in other developed countries. A closer look at the data reveals how America’s social security system compares to other developed nations.

To determine how U.S. social security benefits compare to other developed nations, 24/7 Wall St. reviewed data on pension benefits from the OECD’s Pensions at a Glance 2023 report. OECD countries were ranked based on a combined index consisting of the average lifetime pension payout as a multiple of annual income and net pension income replacement rates in 2022. Supplemental data on average effective retirement age, employment rates for older individuals, social security contributions paid by the average earner, and the composition of income sources for older people are also from the OECD and are for 2022.

38. Lithuania

• Average lifetime pension payout: 3.3x annual income (men), 3.7x annual income (women)
• Average effective retirement age: 63.4 years old (men), 63.8 years old (women)
• Net pension income replacement rates: 28.9% (average earner), 21.3% (high earner)
• Employment rates for older individuals: 69.8% (55-64 years old), 28.8% (65-69 years old)
• Social security contributions paid by average earner: 37.1% of income
• Composition of income sources for older people: 60.9% from public transfers, 35.1% from work, 4.0% from capital, 0.0% from private occupational transfers

37. Estonia

• Average lifetime pension payout: 4.6x annual income (men), 5.3x annual income (women)
• Average effective retirement age: 64.6 years old (men), 65.1 years old (women)
• Net pension income replacement rates: 34.4% (average earner), 21.9% (high earner)
• Employment rates for older individuals: 73.7% (55-64 years old), 35.6% (65-69 years old)
• Social security contributions paid by average earner: 18.4% of income
• Composition of income sources for older people: 63.6% from public transfers, 34.0% from work, 2.3% from capital, 0.0% from private occupational transfers

36. Ireland

• Average lifetime pension payout: 6.0x annual income (men), 6.5x annual income (women)
• Average effective retirement age: 66.3 years old (men), 64.9 years old (women)
• Net pension income replacement rates: 36.1% (average earner), 21.6% (high earner)
• Employment rates for older individuals: 68.1% (55-64 years old), 25.6% (65-69 years old)
• Social security contributions paid by average earner: 27.5% of income
• Composition of income sources for older people: 72.6% from public transfers, 22.3% from work, 5.1% from capital, 0.0% from private occupational transfers

35. Korea

• Average lifetime pension payout: 6.2x annual income (men), 7.4x annual income (women)
• Average effective retirement age: 65.4 years old (men), 67.4 years old (women)
• Net pension income replacement rates: 35.8% (average earner), 23.0% (high earner)
• Employment rates for older individuals: 68.8% (55-64 years old), 50.4% (65-69 years old)
• Social security contributions paid by average earner: 12.4% of income
• Composition of income sources for older people: 48.6% from work, 21.4% from capital, 0.0% from private occupational transfers, 30.0% from public transfers

34. Poland

• Average lifetime pension payout: 5.4x annual income (men), 5.4x annual income (women)
• Average effective retirement age: 64.2 years old (men), 61.2 years old (women)
• Net pension income replacement rates: 40.3% (average earner), 39.1% (high earner)
• Employment rates for older individuals: 56.4% (55-64 years old), 12.3% (65-69 years old)
• Social security contributions paid by average earner: 23.0% of income
• Composition of income sources for older people: 65.7% from public transfers, 33.7% from work, 0.6% from capital, 0.0% from private occupational transfers

33. Japan

• Average lifetime pension payout: 6.9x annual income (men), 8.2x annual income (women)
• Average effective retirement age: 68.3 years old (men), 67.0 years old (women)
• Net pension income replacement rates: 38.8% (average earner), 31.8% (high earner)
• Employment rates for older individuals: 78.1% (55-64 years old), 50.9% (65-69 years old)
• Social security contributions paid by average earner: 15.2% of income
• Composition of income sources for older people: 50.1% from public transfers, 40.3% from work, 7.5% from capital, 2.1% from private occupational transfers

32. Canada

• Average lifetime pension payout: 7.6x annual income (men), 8.3x annual income (women)
• Average effective retirement age: 64.9 years old (men), 63.5 years old (women)
• Net pension income replacement rates: 44.2% (average earner), 24.7% (high earner)
• Employment rates for older individuals: 63.5% (55-64 years old), 27.0% (65-69 years old)
• Social security contributions paid by average earner: 14.9% of income
• Composition of income sources for older people: 41.4% from capital, 37.6% from public transfers, 21.0% from work, 0.0% from private occupational transfers

31. Israel

• Average lifetime pension payout: 7.4x annual income (men), 7.8x annual income (women)
• Average effective retirement age: 66.5 years old (men), 66.0 years old (women)
• Net pension income replacement rates: 47.3% (average earner), 27.3% (high earner)
• Employment rates for older individuals: 69.9% (55-64 years old), 39.8% (65-69 years old)
• Social security contributions paid by average earner: 18.7% of income
• Composition of income sources for older people: 35.3% from public transfers, 28.8% from work, 27.6% from private occupational transfers, 8.2% from capital

30. Australia

• Average lifetime pension payout: 8.1x annual income (men), 8.5x annual income (women)
• Average effective retirement age: 65.1 years old (men), 64.4 years old (women)
• Net pension income replacement rates: 33.7% (average earner), 37.9% (high earner)
• Employment rates for older individuals: 67.1% (55-64 years old), 31.0% (65-69 years old)
• Social security contributions paid by average earner: 23.0% of income
• Composition of income sources for older people: 32.8% from public transfers, 26.2% from work, 24.8% from private occupational transfers, 16.3% from capital

29. Chile

• Average lifetime pension payout: 7.5x annual income (men), 7.7x annual income (women)
• Average effective retirement age: 67.3 years old (men), 63.7 years old (women)
• Net pension income replacement rates: 45.7% (average earner), 36.1% (high earner)
• Employment rates for older individuals: 59.8% (55-64 years old), 33.4% (65-69 years old)
• Social security contributions paid by average earner: 18.8% of income
• Composition of income sources for older people: 48.6% from work, 27.2% from private occupational transfers, 18.3% from public transfers, 5.9% from capital

28. Switzerland

• Average lifetime pension payout: 9.4x annual income (men), 10.3x annual income (women)
• Average effective retirement age: 64.6 years old (men), 64.0 years old (women)
• Net pension income replacement rates: 45.3% (average earner), 24.1% (high earner)
• Employment rates for older individuals: 72.8% (55-64 years old), 21.0% (65-69 years old)
• Social security contributions paid by average earner: 9.4% of income
• Composition of income sources for older people: 41.1% from public transfers, 28.3% from private occupational transfers, 15.5% from capital, 15.1% from work

27. United States

• Average lifetime pension payout: 7.4x annual income (men), 7.9x annual income (women)
• Average effective retirement age: 65.2 years old (men), 65.3 years old (women)
• Net pension income replacement rates: 50.5% (average earner), 38.9% (high earner)
• Employment rates for older individuals: 63.5% (55-64 years old), 32.4% (65-69 years old)
• Social security contributions paid by average earner: 21.9% of income
• Composition of income sources for older people: 39.3% from public transfers, 31.9% from work, 23.3% from capital, 5.5% from private occupational transfers

26. New Zealand

• Average lifetime pension payout: 9.8x annual income (men), 10.6x annual income (women)
• Average effective retirement age: 67.3 years old (men), 65.5 years old (women)
• Net pension income replacement rates: 43.5% (average earner), 23.7% (high earner)
• Employment rates for older individuals: 78.5% (55-64 years old), 47.3% (65-69 years old)
• Social security contributions paid by average earner: 7.6% of income
• Composition of income sources for older people: 46.1% from public transfers, 36.4% from work, 17.5% from capital, 0.0% from private occupational transfers

25. Latvia

• Average lifetime pension payout: 7.0x annual income (men), 8.0x annual income (women)
• Average effective retirement age: 61.7 years old (men), 63.2 years old (women)
• Net pension income replacement rates: 52.8% (average earner), 50.3% (high earner)
• Employment rates for older individuals: 69.5% (55-64 years old), 30.9% (65-69 years old)
• Social security contributions paid by average earner: 24.2% of income
• Composition of income sources for older people: 57.3% from public transfers, 40.0% from work, 2.7% from capital, 0.0% from private occupational transfers

24. United Kingdom

• Average lifetime pension payout: 8.7x annual income (men), 9.4x annual income (women)
• Average effective retirement age: 63.2 years old (men), 62.8 years old (women)
• Net pension income replacement rates: 54.4% (average earner), 39.0% (high earner)
• Employment rates for older individuals: 64.2% (55-64 years old), 25.3% (65-69 years old)
• Social security contributions paid by average earner: 21.6% of income
• Composition of income sources for older people: 41.9% from public transfers, 32.6% from private occupational transfers, 14.2% from work, 11.3% from capital

23. Iceland

• Average lifetime pension payout: 8.2x annual income (men), 8.7x annual income (women)
• Average effective retirement age: 68.3 years old (men), 65.8 years old (women)
• Net pension income replacement rates: 52.1% (average earner), 51.3% (high earner)
• Employment rates for older individuals: 82.6% (55-64 years old), 48.3% (65-69 years old)
• Social security contributions paid by average earner: 14.0% of income
• Composition of income sources for older people: 58.1% from public transfers, 32.2% from work, 9.7% from capital, 0.0% from private occupational transfers

22. Norway

• Average lifetime pension payout: 9.4x annual income (men), 10.3x annual income (women)
• Average effective retirement age: 64.9 years old (men), 62.4 years old (women)
• Net pension income replacement rates: 54.8% (average earner), 36.8% (high earner)
• Employment rates for older individuals: 74.5% (55-64 years old), 32.2% (65-69 years old)
• Social security contributions paid by average earner: 17.0% of income
• Composition of income sources for older people: 57.8% from public transfers, 18.2% from work, 14.2% from private occupational transfers, 9.8% from capital

21. Belgium

• Average lifetime pension payout: 8.4x annual income (men), 9.1x annual income (women)
• Average effective retirement age: 61.1 years old (men), 61.3 years old (women)
• Net pension income replacement rates: 60.9% (average earner), 45.1% (high earner)
• Employment rates for older individuals: 56.6% (55-64 years old), 7.5% (65-69 years old)
• Social security contributions paid by average earner: 23.9% of income
• Composition of income sources for older people: 85.8% from public transfers, 9.5% from work, 4.7% from capital, 0.0% from private occupational transfers

20. Germany

• Average lifetime pension payout: 9.7x annual income (men), 10.8x annual income (women)
• Average effective retirement age: 63.7 years old (men), 63.4 years old (women)
• Net pension income replacement rates: 55.3% (average earner), 43.2% (high earner)
• Employment rates for older individuals: 73.3% (55-64 years old), 19.3% (65-69 years old)
• Social security contributions paid by average earner: 16.3% of income
• Composition of income sources for older people: 68.0% from public transfers, 18.1% from work, 9.3% from capital, 4.6% from private occupational transfers

19. Czechia

• Average lifetime pension payout: 9.7x annual income (men), 10.8x annual income (women)
• Average effective retirement age: 64.0 years old (men), 62.2 years old (women)
• Net pension income replacement rates: 58.9% (average earner), 41.5% (high earner)
• Employment rates for older individuals: 72.9% (55-64 years old), 14.9% (65-69 years old)
• Social security contributions paid by average earner: 19.5% of income
• Composition of income sources for older people: 76.0% from public transfers, 21.6% from work, 2.4% from capital, 0.0% from private occupational transfers

18. Mexico

• Average lifetime pension payout: 9.8x annual income (men), 10.8x annual income (women)
• Average effective retirement age: 66.9 years old (men), 65.6 years old (women)
• Net pension income replacement rates: 62.4% (average earner), 54.4% (high earner)
• Employment rates for older individuals: 55.6% (55-64 years old), 35.4% (65-69 years old)
• Social security contributions paid by average earner: 11.1% of income
• Composition of income sources for older people: 51.6% from work, 27.8% from private occupational transfers, 10.9% from capital, 9.7% from public transfers

17. Slovenia

• Average lifetime pension payout: 10.5x annual income (men), 11.9x annual income (women)
• Average effective retirement age: 61.9 years old (men), 59.7 years old (women)
• Net pension income replacement rates: 63.4% (average earner), 59.6% (high earner)
• Employment rates for older individuals: 55.2% (55-64 years old), 9.7% (65-69 years old)
• Social security contributions paid by average earner: 33.6% of income
• Composition of income sources for older people: 72.4% from public transfers, 23.1% from work, 4.5% from capital, 0.0% from private occupational transfers

16. Slovak Republic

• Average lifetime pension payout: 8.8x annual income (men), 9.9x annual income (women)
• Average effective retirement age: 61.7 years old (men), 61.7 years old (women)
• Net pension income replacement rates: 72.5% (average earner), 67.2% (high earner)
• Employment rates for older individuals: 64.1% (55-64 years old), 9.2% (65-69 years old)
• Social security contributions paid by average earner: 24.3% of income
• Composition of income sources for older people: 63.9% from public transfers, 35.7% from work, 0.4% from capital, 0.0% from private occupational transfers

15. Finland

• Average lifetime pension payout: 10.6x annual income (men), 12.0x annual income (women)
• Average effective retirement age: 63.7 years old (men), 63.8 years old (women)
• Net pension income replacement rates: 65.1% (average earner), 66.1% (high earner)
• Employment rates for older individuals: 71.2% (55-64 years old), 19.4% (65-69 years old)
• Social security contributions paid by average earner: 7.9% of income
• Composition of income sources for older people: 80.3% from public transfers, 10.2% from capital, 9.5% from work, 0.0% from private occupational transfers

14. Denmark

• Average lifetime pension payout: 11.0x annual income (men), 12.2x annual income (women)
• Average effective retirement age: 64.5 years old (men), 63.8 years old (women)
• Net pension income replacement rates: 77.3% (average earner), 62.5% (high earner)
• Employment rates for older individuals: 73.4% (55-64 years old), 24.9% (65-69 years old)
• Social security contributions paid by average earner: 3.7% of income
• Composition of income sources for older people: 44.8% from public transfers, 22.8% from capital, 17.2% from work, 15.2% from private occupational transfers

13. Hungary

• Average lifetime pension payout: 9.4x annual income (men), 10.6x annual income (women)
• Average effective retirement age: 63.2 years old (men), 60.8 years old (women)
• Net pension income replacement rates: 78.8% (average earner), 77.0% (high earner)
• Employment rates for older individuals: 65.6% (55-64 years old), 12.8% (65-69 years old)
• Social security contributions paid by average earner: 33.5% of income
• Composition of income sources for older people: 73.0% from public transfers, 25.5% from work, 1.5% from capital, 0.0% from private occupational transfers

12. France

• Average lifetime pension payout: 11.9x annual income (men), 13.5x annual income (women)
• Average effective retirement age: 60.7 years old (men), 62.2 years old (women)
• Net pension income replacement rates: 71.9% (average earner), 61.8% (high earner)
• Employment rates for older individuals: 56.9% (55-64 years old), 9.9% (65-69 years old)
• Social security contributions paid by average earner: 16.5% of income
• Composition of income sources for older people: 78.1% from public transfers, 15.0% from capital, 6.9% from work, 0.0% from private occupational transfers

11. Sweden

• Average lifetime pension payout: 10.8x annual income (men), 11.7x annual income (women)
• Average effective retirement age: 65.5 years old (men), 64.5 years old (women)
• Net pension income replacement rates: 65.3% (average earner), 82.9% (high earner)
• Employment rates for older individuals: 77.3% (55-64 years old), 27.6% (65-69 years old)
• Social security contributions paid by average earner: 3.6% of income
• Composition of income sources for older people: 51.6% from public transfers, 19.0% from private occupational transfers, 17.0% from work, 12.4% from capital

10. Costa Rica

• Average lifetime pension payout: 12.7x annual income (men), 14.1x annual income (women)
• Average effective retirement age: 66.7 years old (men), 62.2 years old (women)
• Net pension income replacement rates: 67.8% (average earner), 65.7% (high earner)
• Employment rates for older individuals: 54.2% (55-64 years old), 21.8% (65-69 years old)
• Social security contributions paid by average earner: 5.2% of income
• Composition of income sources for older people: 46.1% from public transfers, 40.4% from work, 13.5% from capital, 0.0% from private occupational transfers

9. Italy

• Average lifetime pension payout: 13.0x annual income (men), 14.8x annual income (women)
• Average effective retirement age: 63.0 years old (men), 62.0 years old (women)
• Net pension income replacement rates: 82.6% (average earner), 87.5% (high earner)
• Employment rates for older individuals: 55.0% (55-64 years old), 13.8% (65-69 years old)
• Social security contributions paid by average earner: 6.1% of income
• Composition of income sources for older people: 75.6% from public transfers, 19.0% from work, 5.3% from capital, 0.0% from private occupational transfers

8. Colombia

• Average lifetime pension payout: 15.2x annual income (men), 18.8x annual income (women)
• Average effective retirement age: 67.8 years old (men), 60.7 years old (women)
• Net pension income replacement rates: 73.1% (average earner), 71.5% (high earner)
• Employment rates for older individuals: 55.2% (55-64 years old), 35.8% (65-69 years old)
• Social security contributions paid by average earner: 0.0% of income
• Composition of income sources for older people: N/A

7. Austria

• Average lifetime pension payout: 15.0x annual income (men), 16.6x annual income (women)
• Average effective retirement age: 61.6 years old (men), 60.9 years old (women)
• Net pension income replacement rates: 87.4% (average earner), 65.9% (high earner)
• Employment rates for older individuals: 56.4% (55-64 years old), 10.4% (65-69 years old)
• Social security contributions paid by average earner: 11.8% of income
• Composition of income sources for older people: 82.2% from public transfers, 13.4% from work, 4.4% from capital, 0.0% from private occupational transfers

6. Netherlands

• Average lifetime pension payout: 13.5x annual income (men), 14.5x annual income (women)
• Average effective retirement age: 65.0 years old (men), 63.9 years old (women)
• Net pension income replacement rates: 93.2% (average earner), 87.5% (high earner)
• Employment rates for older individuals: 73.1% (55-64 years old), 23.0% (65-69 years old)
• Social security contributions paid by average earner: 16.5% of income
• Composition of income sources for older people: 42.7% from public transfers, 39.6% from private occupational transfers, 11.9% from work, 5.8% from capital

5. Portugal

• Average lifetime pension payout: 12.8x annual income (men), 14.4x annual income (women)
• Average effective retirement age: 66.6 years old (men), 64.6 years old (women)
• Net pension income replacement rates: 98.8% (average earner), 96.1% (high earner)
• Employment rates for older individuals: 65.9% (55-64 years old), 21.6% (65-69 years old)
• Social security contributions paid by average earner: 24.0% of income
• Composition of income sources for older people: 74.7% from public transfers, 21.0% from work, 4.3% from capital, 0.0% from private occupational transfers

4. Greece

• Average lifetime pension payout: 15.8x annual income (men), 17.5x annual income (women)
• Average effective retirement age: 63.2 years old (men), 59.7 years old (women)
• Net pension income replacement rates: 90.0% (average earner), 82.7% (high earner)
• Employment rates for older individuals: 51.9% (55-64 years old), 14.1% (65-69 years old)
• Social security contributions paid by average earner: 8.8% of income
• Composition of income sources for older people: 74.5% from public transfers, 21.4% from work, 4.1% from capital, 0.0% from private occupational transfers

3. Turkey

• Average lifetime pension payout: 13.2x annual income (men), 15.0x annual income (women)
• Average effective retirement age: 61.5 years old (men), 60.2 years old (women)
• Net pension income replacement rates: 95.4% (average earner), 104.2% (high earner)
• Employment rates for older individuals: 35.2% (55-64 years old), 18.6% (65-69 years old)
• Social security contributions paid by average earner: 26.2% of income
• Composition of income sources for older people: 57.3% from public transfers, 26.9% from work, 15.8% from capital, 0.0% from private occupational transfers

2. Spain

• Average lifetime pension payout: 20.1x annual income (men), 22.7x annual income (women)
• Average effective retirement age: 62.1 years old (men), 61.8 years old (women)
• Net pension income replacement rates: 86.5% (average earner), 57.6% (high earner)
• Employment rates for older individuals: 57.7% (55-64 years old), 9.5% (65-69 years old)
• Social security contributions paid by average earner: 5.9% of income
• Composition of income sources for older people: 71.9% from public transfers, 19.5% from work, 8.6% from capital, 0.0% from private occupational transfers

1. Luxembourg

• Average lifetime pension payout: 19.7x annual income (men), 21.8x annual income (women)
• Average effective retirement age: 60.5 years old (men), 58.4 years old (women)
• Net pension income replacement rates: 86.9% (average earner), 78.7% (high earner)
• Employment rates for older individuals: 46.6% (55-64 years old), 6.6% (65-69 years old)
• Social security contributions paid by average earner: 10.9% of income
• Composition of income sources for older people: 83.1% from public transfers, 8.5% from work, 8.4% from capital, 0.0% from private occupational transfers

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