Replacement Rates of Public Pensions in Canada
Heterogeneity across Socio-Economic Status
Bibliographic Data
| ID | 11967768 |
|---|---|
| Authors | Nicholas‐James Clavet (Université du Québec à Montréal, corresponding author), Nicholas-James Clavet (HEC Montreal, Montréal, Québec, Canada), Mayssun El-Attar (McGill University, Montreal, Quebec, Canada), Raquel Fonseca (0000-0002-6454-6622, ESG UQAM, Montreal, Quebec, Canada) |
| Year | 2022 |
| Volume | 48 |
| Issue | S2 |
| Pages | 22-34 |
| Publication date | 2022-10-28 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Canadian Public Policy (JOURNAL) |
| Journal identifiers | ISSN: 0317-0861 • E-ISSN: 1911-9917 |
| Publisher | University of Toronto Press Inc. (UTPress) (PUBLISHER) |
| DOI | 10.3138/cpp.2022-030 |
| OpenAlex | W4307705053 |
| Language | EN |
| Citations received | 2 |
| References cited | 13 |
Several income sources can help retirees maintain their welfare and consumption levels once they leave the workforce. One source is public pensions. Their importance as an income source varies greatly according to socio-economic status (SES). In this article, we analyze how replacement rates (RRs) of public pensions (Old Age Security and Guaranteed Income Supplement) and mandatory public pension benefits (Canada/Quebec Pension Plan [C/QPP]) vary across SES by using the Longitudinal and International Study of Adults dataset. Taking advantage of the longitudinal nature of this survey, we compute and compare average RRs by SES. We specifically consider the role of education and health to understand variations in RRs. Our results show that the average RR of public pensions for individuals in bad health is 32 percent, whereas for those who report being in good health, it is 21 percent. When public pensions and C/QPP benefits are included, these percentages become 54 percent for those in bad health and 41 percent for those in good health. When estimating a multivariate regression model and controlling for past income, we look at couples and find that past income does not eliminate differences in RR by education level and health status. Our results suggest that assortative matching could play a role in explaining the variation in RRs across individuals’ education
Consumption (sociology · Demographic economics · Economic growth · Economics · Health and Retirement Study · Matching (statistics · Pension · Public health · Social security · Sociology · Welfare · Workforce · Demography · Financial Literacy, Pension, Retirement Analysis · Global Health Care Issues · Medicine · Retirement, Disability, and Employment · Finance
Individual Financial Returns from Quebec Pension Plan Reform Options
Canadian Seniors and the Low Income Measure
Age of Pension Eligibility, Gains in Life Expectancy, and Social Policy
New Canada Pension Plan Enhancements
Income Replacement Rates among Canadian Seniors
Senior Poverty in Canada
Educational Assortative Mating and Household Income Inequality
| Unique citing works | 2 |
|---|---|
| Citations per year | 1 |
| Citation span | 2024 - 2024 (1) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 2 |