A review of the literature suggests that when pension values are measured by the wealth equivalent of promised defined benefit pension benefits and defined contribution balances for those approaching retirement, pensions account for more support in retirement than is suggested when their contribution is measured by incomes received directly from pension plans by those who have already retired. Estimates from the Health and Retirement Study for respondents in their early fifties suggest that pension wealth is about 82% as valuable as Social Security wealth. In data from the Current Population Survey (CPS), for members of the same cohort, measured when they are 65–69, pension incomes are about 58% as valuable as incomes from Social Security. Our empirical analysis uses data from the HRS to examine the reasons for these differences in the contributions of pensions as measured in income and wealth data. Key factors accounting for these differences include: a difference in methodology between surveys affecting what is included in pension income; some pension wealth ‘disappears’ at retirement because respondents change their pension into other forms that are not counted as pension income; and the form of annuitization may influence the measure of pension income. A series of caveats notwithstanding, the bottom line is that CPS data on pension incomes received in retirement understates the full contribution pensions make to supporting retirees.

The last “great pension debate” in Canada came to an end in the early 1980s but is now about to resume. The terms of debate have changed significantly, however. As a contribution to the debate, this paper aims to identify emergent positions and the new social, economic and political conditions to which they are a response. “Conservative” strategies have emphasized privatization of the pension function and greater emphasis on providing income-tested benefits to the low income elderly. New “progressive” alternatives have advocated a redesign of the welfare state to allow for a more flexible model of retirement and the economic life course more generally. Each is a response to real changes in the fiscal capacities of governments, the conditions for successful economic performance and the distribution of economic risk among age groups. The empirical core of the paper uses data from the Survey of Consumer Finances to show how the age distribution of economic well-being has changed since the the 1960s when the current welfare state was designed. Our aim is not to resolve the debate but to set it in context and identify the main assumptions and models underlying alternative strategies for reform.