This report compares Australia’s superannuation scheme and Age Pension program with the pension systems of Sweden and Norway.
It shows that the mostly public systems of these Nordic Countries are more effective at ensuring income security for retirees. Compared to both Sweden and Norway, Australia has a significantly higher poverty rate among people in retirement.
Australia has a much higher poverty rate among people aged over 65 than Sweden and Norway. Unlike Australia, Sweden and Norway’s robust public pension systems ensure retirement security. Australia could reduce levels of poverty in retirement by increasing spending on the Age Pension. This could be funded by reducing the inequitable tax concessions on superannuation given to high income earners.
The Australia Institute is an independent public policy think tank based in Canberra. It is funded by donations from philanthropic trusts and individuals and commissioned research. We barrack for ideas, not political parties, or candidates. Since its launch in 1994, the Institute has carried out highly influential research on a broad range of economic, social and environmental issues.
:format():fill())