Retirement Realities: How Social Security Benefits Compare Internationally

5. United States: A Supplement, Not a Sole Source

The U.S. Social Security system primarily serves as a foundational "safety net" rather than a comprehensive retirement plan. Benefits are based on a worker's highest 35 years of earnings, with a progressive formula. However, they are generally intended to supplement, not replace, other retirement savings (like 401ks and IRAs). The U.S. model emphasizes individual responsibility for private savings, with Social Security providing a crucial, but often insufficient, income stream, highlighting a philosophical difference in governmental responsibility compared to many European nations.

6. Canada: Multi-Tiered Support for Seniors

Canada's social security for seniors is a multi-tiered system. The foundational layer is Old Age Security (OAS), a universal, residency-based pension for most Canadians over 65, independent of work history, though it's clawed back for high earners. Complementing this is the Canada Pension Plan (CPP), a mandatory, contributory scheme providing earnings-related benefits. Many also have private or occupational pensions. This blend aims for both universal coverage and earnings-based support, reflecting a balance between collective welfare and individual contribution within a robust social system.