>Another question on Foreign Pensions

>Same Friend, different question:

Old Age Pensions in different countries:

Canada: C$502.31 per month (decreasing gradually if you make between 65 and 105k)

Ireland: I think ” The current state social welfare pension is €11,611.60 per year (or €223.30 per week) as of January 2008.”

Australia: ~575 AUD/month

Oh, wait, the SSA seems to have pages for this, such as:

I guess my basic question is, why aren’t other countries having the same meltdown?

a. They are, but don’t realize it yet.
b. They don’t pay old people as much as we do.
c. Something else?

Other countries have much higher levels of overall taxation than we do. Typically they have an income tax like we do, a payroll tax like we do, but also a VAT (sales tax) of about 12-18%, and gasoline taxes of about 200-300%. All that revenue pays for a much more generous welfare state, that happens to be spread a little more evenly between the working people (they get healthcare!) and the elderly.

It looks like the amounts you cite above are approximately equal to our social security payments for middle income earners, as a fraction of average wages. Remember, per capita GDP in some other countries is lower than in the US. For Ireland, Euros are worth 50% more than dollars, so that’s about $1500 per month.


About perkinsms

I'm an engineer and father interested in transit, parking and economics.
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