The Adequacy Sub-Index 2010

The adequacy subindex is determined by considering the benefits provided to both the poor and the median-income earner as well as several design features which enhance the efficacy of the overall system.

The net household saving rate and home ownership rate have also been included as non-pension savings can represent an important source of financial security during retirement.

The countries with the highest value for the adequacy sub-index are the Netherlands (76.1) and Canada (75.0), with Japan (42.2) having the lowest value. Whilst several indicators influence these scores, the level of the minimum pension (expressed as a percentage of the average wage) and the net replacement rate provided for a median income earner are the most important.

Full details of the values in respect of each indicator in the adequacy sub-index are shown in Attachment 1 of the Index.

Download “The Adequacy Sub-Index” section of the Index