> Pension Replacement Rate: 64.5%
> Male/Female Retirement Age: 59/59
> Male/Female Life Expectancy:82/86.1
> Sovereign Debt as percentage of GDP: 109%
> Employment Rate: 56.9%
Italians can receive a cushy pension at quite an early age. At age 59, an employee making the median income — along with those making half and one-and-a-half times the median income — can begin receiving a pension paying out 64.5% of an individual’s salary. Considering that the average woman lives to the age of 86, that is a long pension payout. Italy is the only country except for Greece to hold more debt than its GDP. The country spends 15.3% of its GDP on public pensions, more than any other country in the OECD.
> Pension Replacement Rate: 76.6%
> Male/Female Retirement Age: 65/60
> Male/Female Life Expectancy: 82.5/85.4
> Sovereign Debt as percentage of GDP: 65.8%
> Employment Rate: 72.2%
Those making the median income in government can receive more than three-quarters of their salary following retirement. That is an especially good deal for women, who are expected to live for more than 25 years after retiring at 60. This could take a hefty toll on the government, but the high employment for those aged 15-64 of 72.2% helps to keep these pensions funded. Furthermore, household disposable income of $27,541 is higher than any country on this list except for Luxembourg, which helps put Austria’s economy on stronger footing compared to some of its European peers.
> Pension Replacement Rate: 81.2%
> Male/Female Retirement Age: 65/65
> Male/Female Life Expectancy: 83/86.1
> Sovereign Debt as percentage of GDP: 51.7%
> Employment Rate: 58.4%
Despite Spain’s significant economic woes, the country manages to pay out a sizable pension to employees. Spain’s pension pays 81.2% of the salary for those making the median income, half the median income and one-and-a-half times the median income. While the retirement age is higher than in many of the countries on the list, men are expected to live 18 years after retirement age, while women are expected to live more than 21 years following retirement, leading to a sizeable government payout. This comes as Spain has been severely hampered by unemployment. More than 9% of those between ages 15-64 have been looking for a job for more than a year, more than any other country measured by the OECD.
> Pension Replacement Rate: 87.4%
> Male/Female Retirement Age: 60/60
> Male/Female Life Expectancy: 80.9/84.7
> Sovereign Debt as percentage of GDP: 12.6%
> Employment Rate: 65.3%
In Luxembourg, once reaching the age of 60, citizens making the median income can begin drawing 87.4% of their income. Meanwhile, for those making only half the median income, they can take home 97.9% of their salary by age 60. Fortunately, Luxembourg’s economy is far stronger than other European countries such as Greece. Its sovereign debt is only 12.6% of GDP, the best of all countries on this list and the fourth best of countries measured by the OECD. Furthermore, household disposable income is $35,321, second only to the U.S. in the countries measured by the OECD, while household wealth is $72,644, after only the U.S. and Switzerland.
> Pension Replacement Rate: 95.7%
> Male/Female Retirement Age: 57/57
> Male/Female Life Expectancy: 80.9/ 84.2
> Sovereign Debt as percentage of GDP: 147.8%
> Employment Rate: 58.5%
Greece’s public employees get a pretty sweet deal. They get to enjoy nearly a full salary for life beginning at age 57, the earliest retirement age of all countries except for Turkey. After figuring in tax deductions, the replacement rate for those making the median income is 111.2%, the only country with net replacement rates above 100% for that income level. Since both men and women are expected to live into their 80s, the government is on the hook for a lot as evidenced by the 13.6% of GDP that is spent on public pensions — more than all countries in the OECD except for three. Government spending in Greece has definitely taken its toll. The country has $147.80 of debt for every $100 in GDP, a higher ratio than any other country on the list by a longshot.