Pension supplement: the Debate Over the Risk of Old-Age Poverty

Several points have been neglected in the current debate over the pros and cons of a pension supplement to reduce the risk of future old-age poverty. The calculations are based on assumptions that are inconsistent in some cases, and do not take into consideration the social security system that is already available, namely old-age basic income support. Private and corporate pension schemes are also neglected to a large extent. This article discusses these points and clarifies where pension supplements may be of help and where they will not.