Occupational welfare policies and pension income inequalities: Case studies of pension systems in Denmark, Finland, and the United Kingdom

This paper provides an overview of different approaches to old age security and their societal outcome in three advanced welfare states: Denmark, Finland, and the United Kingdom. All three countries established a public first tier minimum pension, which was also pursued in the following. Reform paths in the area of supplementary private systems show a broad variation in terms of regulation. As a result, income inequalities among the elderly could reveal specific characteristics. Data evaluations of the Luxembourg Income Study measure the outcomes of these public-private mixes among the current elderly population. Analyses by socio-demographic and socio-economic characteristics allow detailed interpretation of public and private pension income sources and income levels. Finnish providers are strongly involved in occupational pension provision, whereas public benefits decrease in importance. British retirees have mixed their provision mix strongly, but high income earners tend to maintain less of their previous income. Danish pensioners are selectively covered with private pension income, which keeps benefits of middle income pensioners rather close to the minimum pension amount - a scenario which is slightly changing since the introduction of mandatory occupational pensions in the 90s.