The United States’ retirement income system comprises a social security system with a progressive benefit formula based on lifetime earnings, adjusted to a current dollar basis, together with a means-tested top-up benefit; and voluntary private pensions, which may be occupational or personal.    The following table shows the position of the United States when compared to the 17 other countries.

The overall index value for the American system could be increased by:

• raising the minimum pension for low-income pensioners
• adjusting the level of mandatory contributions to increase the net replacement for median-income earners
• improving the vesting of benefits for all plan members and maintaining the real value of retained benefits through to retirement
• reducing pre-retirement leakage by further limiting the access to funds before retirement
• introducing a requirement that part of the retirement benefit must be taken as an income stream

The American index value increased from 58.1 in 2011 to 59.0 in 2012 primarily due to an increase in pension coverage as the OECD information is now using survey data and an increased level of assets. This improvement was partly offset by a fall in the household saving rate and increased government debt.