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Public Pensions Around the World: Retirement Ages and What They Pay
The short answer: in most rich countries the standard pension age is now 65 to 67 and rising, and the pensions you are required to have (the public pension plus any compulsory workplace scheme) replace a little over 60% of an average earner’s take-home pay on average across the OECD. That average hides a huge spread, and in many countries the public pension alone pays much less. Some countries pay close to a full salary; others pay a flat amount that covers the basics and expect workplace and personal savings to do the rest. Knowing which kind of system you are in tells you how much you have to save yourself.
How public pensions work
Almost every country runs some mix of three layers:
- A state pension, paid by the government and usually funded by today’s workers’ payroll taxes. It is either earnings-related (you get more if you paid in more, as with US Social Security or the Canada Pension Plan) or flat (everyone with a full record gets the same amount, as with the UK’s new State Pension).
- A workplace pension, which may be compulsory (Australia’s superannuation), automatic with an opt-out (UK auto-enrolment), or voluntary (a US 401(k)).
- Personal savings, often in a tax-advantaged account such as an IRA, an ISA, a TFSA or an RRSP.
Most state pensions also need a minimum number of years of contributions or residence before they pay anything, and a longer record for the full amount.
Retirement ages are rising
The OECD’s Pensions at a Glance 2025 puts the average normal retirement age across its 38 member countries at about 64.7 for men and 63.9 for women retiring in 2024. Under laws already passed, that rises to about 66.4 and 65.9 for people starting work today, because more and more countries link the pension age to life expectancy or have scheduled increases.
“Normal” age is not the only age that matters. Many systems let you start early for a permanently smaller pension, or wait for a permanently larger one, so the age you choose can change your income for the rest of your life.
Country by country
| Country | Standard age | Can you start early? | Reward for waiting |
|---|---|---|---|
| United Kingdom (State Pension) | 66, rising to 67 between 2026 and 2028 | No | About 5.8% a year (1% for every 9 weeks) |
| Canada (CPP) | 65 | From 60, 0.6% less per month early (36% less at 60) | 0.7% per month to 70 (42% more) |
| Canada (OAS) | 65 | No | 0.6% per month to 70 (36% more) |
| Japan (national pension) | 65 | From 60, 0.4% less per month early (24% less at 60) | 0.7% per month to 75 (84% more) |
| Australia (Age Pension) | 67 | No; it is means-tested | None; super can be reached from 60 once retired |
| Germany (statutory pension) | Rising to 67 for people born in 1964 or later | From 63 with 35 years of insurance, with a reduction | 0.5% per month after the standard age |
| United States (Social Security) | 67 for people born in 1960 or later | From 62, about 30% less | 8% a year to 70 (24% more) |
Japan’s 0.4% early reduction applies to people born on or after April 2, 1962. Rules change, so check the official source for your country before you decide; the links are listed at the end of this guide.
Flat pensions versus earnings-related pensions
The kind of system you are in matters more than the headline age.
- Flat and means-tested benefits are different. A flat benefit such as the UK new State Pension depends mainly on the qualifying contribution record rather than earnings. Means-tested benefits such as Australia’s Age Pension can be reduced or eliminated by income and asset tests. The full new UK State Pension is £241.30 a week in 2026/27; 35 qualifying years is the standard full-record rule for people whose National Insurance record began after April 2016. Earlier records can be calculated differently, so use your own forecast.
- Earnings-related systems (much of continental Europe, Canada’s CPP, US Social Security) pay more to people who earned and contributed more, usually up to a ceiling. Replacement rates tend to be higher, so a smaller private top-up is needed to keep the same standard of living.
The OECD’s 2023 edition found that net replacement rates for an average earner with a full career range from under 35% in some countries to 90% or more in others. Those figures count every mandatory scheme, including compulsory workplace pensions such as Australia’s super, so where part of the total comes from a workplace scheme, the state pension on its own pays less than the headline rate.
If you have worked in more than one country
Moving abroad does not usually mean losing the years you paid in.
- Inside the European Union (plus Iceland, Liechtenstein, Norway and Switzerland), coordination rules let each country count your insurance periods in the others when checking whether you qualify. Each country then pays its share.
- Bilateral social security agreements do the same between pairs of countries. The US has them, called totalization agreements, with about 30 countries, including Canada, the UK, Japan, Germany and Australia. They also stop you paying social security tax in two countries for the same work.
- Keep records of every country you worked in: your ID or insurance number there, your employers and the dates. Claims across borders are slower when the paper trail is thin.
Some pensions are not increased when you live abroad. A UK State Pension paid to someone living in Canada or Australia, for example, is generally frozen at the rate it was when they first got it or moved abroad, while one paid in the EU or the US rises each year.
What to do with this
- Get your own statement. Every system on this page offers an online forecast: Check your State Pension in the UK, My Service Canada Account, myGov in Australia, the Nenkin Net service in Japan, and my Social Security in the US.
- Estimate your gap. Take your expected spending in retirement, subtract the forecast public pension, and the rest is what your workplace and personal savings must cover. The FI Number calculator turns that gap into a savings target, in your own currency.
- Treat the claiming age as a decision. Where waiting is rewarded, a larger lifelong pension works like insurance against living a long time. The trade-offs are the same ones covered in When to Claim Social Security.
A public pension is the base layer of Retirement wealth, one of the eight dimensions this site measures. The Retirement assessment looks at how it fits with your savings and plan.
Common questions
What is the average retirement age in OECD countries?
The OECD puts the average normal retirement age at about 64.7 for men and 63.9 for women retiring in 2024. Under current laws it rises to about 66.4 and 65.9 for people who start work today.
How much of my salary will a state pension replace?
Across the OECD, mandatory pensions (the public pension plus any compulsory workplace scheme) replace a little over 60% of an average earner’s take-home pay on average, but the range is wide: under 35% in some countries and 90% or more in others. The public pension alone is often less, especially in flat systems such as the UK’s.
Can I get a state pension from more than one country?
Usually, yes. EU coordination rules and bilateral social security agreements let countries count your years in each other when deciding if you qualify, and each country then pays a pension for the years you worked there.
Can I take my state pension early?
It depends on the country. Canada’s CPP and Japan’s national pension can start at 60 for a permanently smaller amount, and US Social Security at 62. The UK State Pension and Australia’s Age Pension cannot be taken before the standard age.
Related guides
The linked Retirement assessment uses U.S. J.P. Morgan age-and-income checkpoints and Social Security assumptions. It is not calibrated to this country’s pensions or taxes; use local account statements and a spending-based plan for retirement decisions.
Sources
- Pensions at a Glance 2025, OECD
- The new State Pension: What you’ll get, GOV.UK
- Delay (defer) your State Pension, GOV.UK
- State Pension if you retire abroad, GOV.UK
- When to start your CPP retirement pension, Government of Canada
- Old Age Security: When to start your pension, Government of Canada
- Age Pension: Who can get it, Services Australia
- Old-age Basic Pension, Japan Pension Service
- U.S. International Social Security Agreements, Social Security Administration
- Coordination of social security systems, European Commission
This guide is for informational and educational purposes only. It is not financial, medical, legal, or tax advice. Consult a qualified professional for guidance specific to your situation.
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