Old-Age Pensions

This chapter examines the origins, development and impact of old-age pension policy in the advanced industrial countries. The dramatic expansion of pensions in the past century is the result of efforts by employers and unions to improve the material conditions of workers, but it is also the consequence of state action. Since the late 19th century, the state has dramatically increased its role in guaranteeing at least a minimum level of retirement income and regulating private pension provision. The chapter begins with a discussion of the historical development of old-age pensions and their transformation from employer patronage to a ‘deferred wage’ or even a ‘social right’. The second section draws on influential typologies of pension system structure to examine the most important dimensions of pension policy design. The chapter then surveys the social science literature concerning the causes of institutional variation in old-age pensions. The subsequent section considers the impact of old-age pension policy on poverty and income inequality. The chapter concludes with a discussion of the current challenges facing old-age pension systems in the late 2010s.