Pension Coverage and Earnings Replacement Rates Among Canadian Couples
AbstractUsing data from the Longitudinal Administrative Database (LAD), this paper compares the earnings replacement rates achieved in retirement by a sample of married and common-law couples in which the husband was aged 55 to 57 in 1991. Emphasis is placed on the outcomes experienced by couples in which one spouse or both spouses had registered pension plan (RPP) coverage and by couples without RPP coverage. The earnings replacement rates achieved by couples without RPP coverage are more widely dispersed than those of couples with RPP coverage. When compared at the mid-points of the pre-retirement earnings distributions, the median earnings replacement rates of couples without RPP coverage are about three to six percentage points lower than those of couples with RPP coverage. In contrast, the average earnings replacement rates of couples without RPP coverage are generally six to twelve percentage points higher than those of couples with RPP coverage.
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Bibliographic InfoPaper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2010327e.
Date of creation: 22 Jul 2010
Date of revision:
Income; pensions; spending and wealth; Seniors; Work and retirement;
This paper has been announced in the following NEP Reports:
- NEP-AGE-2010-08-06 (Economics of Ageing)
- NEP-ALL-2010-08-06 (All new papers)
- NEP-LAB-2010-08-06 (Labour Economics)
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- Finnie, Ross & Spencer, Byron G., 2013. "How do the level and composition of income change after retirement? Evidence from the LAD," CLSSRN working papers clsrn_admin-2013-21, Vancouver School of Economics, revised 29 Apr 2013.
- Kevin D. Moore & William Robson & Alexandre Laurin, 2010. "Canada’s Looming Retirement Challenge: Will Future Retirees Be Able to Maintain Their Living Standards upon Retirement?," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 317, December.
- Milligan, Kevin & Schirle, Tammy, 2013. "The Retirement Income System and the Risks Faced by Canadian Seniors," CLSSRN working papers clsrn_admin-2013-27, Vancouver School of Economics, revised 29 Apr 2013.
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