Governments must continue reforms to ensure that public and private retirement income provision is socially as well as financially sustainable, according to this report.

"More than one in four Australian seniors live in poverty on international measures," according to the report. "This is the fourth highest old-age poverty rate in the OECD countries and more than double the OECD average.  The OECD welcomes the government’s increase in the age pension to address this problem."

With rising unemployment and falling tax revenues squeezing public finances, OECD governments face budget deficits of nearly 9% of national income on average in 2010. This leaves little room for more generous public pensions, according to the 2009 edition of the OECD’s biennial. Some countries have already had to cut back on future public spending on pensions.

Selected material from the report, including the Australian material (33), is available free online. The full report must be purchased.