The earnings replacement rate of old-age benefits in 12 countries, 1969-80.

This article reports the findings of the first cross-national study since 1975 of earnings replacement rates--the proportion of immediate preretirement earnings replaced by social security retirement benefits. In the countries studied--Austria, Canada, Denmark, France, the Federal Republic of Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States--the replacement rates in recent years seem to have continued their upward trend, although they appear to be rising more slowly than before, and under some interpretations seem to be leveling off. In 1980, the United States was fifth among the countries studied in replacement rates for retired couples (one working spouse, one nonworking spouse) and fell within the middle range for single aged beneficiaries: Six countries provided higher benefit levels, four provided lower benefits, and one provided benefits at the same level.