Disposable incomes of older people are on average lower than those of the total population. The over‑65s had incomes of 87% of the total population’s in 2022 on average, broken down into 92% for the 66‑75 and 80% for the over‑75s. Among the over‑65s, the range goes from 70% or less in Estonia, Korea, Latvia and Lithuania to around 100% or more in Israel, Italy, Luxembourg and Mexico. In two‑thirds of OECD countries, public transfers provide more than half of gross income after age 65. Older men on average had an income of 92% of that of the total population, 9 percentage points (p.p.) above that for older women.
Pensions at a Glance 2025
OECD and G20 Indicators
The average income of people over 65 was equal to 87% of that of the total population on average across OECD countries in the latest year available (Table 7.1). Older people fare best in Israel, Italy, Luxembourg and Mexico in relative terms where incomes for the over‑65s were about or slightly higher than for the total population. Older people also had high relative incomes on average in Canada, Costa Rica, France, Iceland, Portugal, the Slovak Republic, Spain and the United States in international comparison. In Estonia, Korea Latvia and Lithuania, by contrast, the income of older people was about one‑third lower.
Average relative incomes tend to fall with age after retirement. Lower relative incomes for older retirees are partly explained by cohort effects given growth trends in real earnings across cohorts driven by productivity gains. Where pensions are indexed to average‑wage growth, pensions during retirement improve similarly; however, many countries index at a lower level than wage growth. While price indexation protects purchasing power, it tends to lower relative income over time; this particularly affects women who tend to live long with low income, following lower past employment and wages compared to men. Moreover, older people live alone more often, which lowers their equivalised disposable income given household economies of scale.
The income of people aged over 65 has increased relative to that of the total population in more than two‑thirds of OECD countries since 2000, and on average by 5.3 p.p. across all countries for which data is available. Driven by a maturing pension system, the over‑65s in Israel have seen the strongest rise in their relative income, about 25 p.p., from 82% in 2000 to 107% in 2022. Iceland, Ireland, Mexico, Norway, the Slovak Republic and Spain have also recorded increases of at least 15 p.p. The sharpest declines are reported in Chile (‑17 p.p. since 2006) and Poland (‑9 p.p. since 2005).
Older men on average have an income equal to 91.9% of that of the total population, some 9 p.p. above that of older women. Austria and Lithuania have the largest gender gap at 15 and 17 percentage points respectively.
Sources of income
Of the four main sources of income on which older people draw, public transfers (earnings-related pensions, resource‑tested benefits, etc.) and private occupational transfers (mandatory pensions, severance payments, death grants, etc.) account for 56% and 7% of older people’s incomes on average (Figure 7.1). The countries where over‑65s are most reliant on public transfers are Austria, Belgium, Finland, France and Luxembourg: around 80% of their incomes come from that source. Public transfers represent only 13% and 24% of all income in Mexico and Chile, respectively. Private occupational transfer expenditures are reported in 14 OECD countries, with the Netherlands being highest at 39%.
Work accounts for 27% and capital for about 10% of older people’s incomes on average. Work is especially important in Korea and Mexico, where it accounts for around half of old-age income; it also represents a large share of income in Chile, Costa Rica, Estonia, Iceland, Japan, Latvia, Lithuania, New Zealand, Poland, the Slovak Republic and the United States. However, as incomes are measured at the household level, the income recorded from work could be coming from younger generations living in multi-generational households rather than specifically from the older household members.
Capital, mostly voluntary private pensions, represents over 40% of all income sources of older people in Canada. In Denmark, Korea and the United States, capital represents over 20% of all income.
Definition and measurement
Incomes of older people groups all incomes from employment, self-employment, capital and public transfers. The data shown are for disposable incomes (i.e. net of personal income tax and social security contributions). Incomes are measured on a household basis and equivalised with the square‑root equivalence scale to adjust for differences in household size. See OECD Income Distribution Database for more details on definitions and data sources. The special chapter on “Incomes and poverty of older people” in OECD (2013) provides a more detailed analysis.
Further reading
OECD (2025), Income Distribution Database, www.oecd.org/social/income‑distribution-database.htm (accessed on 03 July 2025).
OECD (2019), Will future pensioners work for longer and retire on less?, OECD, Paris, https://www.oecd.org/en/publications/will-future-pensioners-work-for-longer-and-retire-on-less_0fa49b9b-en.html.
OECD (2013), Pensions at a Glance 2013: OECD and G20 Indicators, OECD Publishing, Paris, https://doi.org/10.1787/pension_glance-2013-en.
Average income by age group and gender in percentage of average income of total population
Notes: Most recent data are for 2022 except for the following countries: Canada, Costa Rica, Finland, Latvia, the Netherlands, Sweden, the United Kingdom and the United States (2023), Germany and Japan (2021), Australia (2020) and Iceland (2017).: Data for 2000 except for Greece and Türkiye (2004), Czechia, Iceland, Ireland, Latvia, Lithuania, Poland, Portugal, the Slovak Republic and Slovenia (2005), Chile and Switzerland (2006), Austria and Spain (2007). Due to a break in series, 2006‑data for Chile are scaled with a factor measuring the age‑specific effect of the series break on income levels using data from 2011 or closest available. Historical data for Belgium, Estonia, Korea and Luxembourg are not comparable due to breaks in series and those for Costa Rica are unavailable and are not shown here. Data for Colombia is unavailable.
Source: OECD Income Distribution Database, www.oecd.org/social/income-distribution-database.htm (June 2025 version).
Percentage of total equivalised gross household income and transfers
Note: Income from work includes both earnings (employment income) and income from self-employment. Private occupational transfers include pensions, severance payments, death grants and other. Capital income includes private personal pensions and income from the returns on non-pension savings. Data are for 2022 except for some countries; see note of Table 7.1.
Source: OECD Income Distribution Database, www.oecd.org/social/income-distribution-database.htm (June 2025 version).