Practically every other European country has adopted some form of old age relief.[133] Denmark in 1891 put in operation a scheme of outdoor relief for the deserving aged poor. This, too, was done as a political move to reconcile radicals and liberals. Its pensionable age of 60 years is, I believe, the lowest anywhere found. The amount of the dotation is not fixed; local authorities decide it in each individual case. It must be, however, “sufficient for support.” Communes and the state bear the expense equally.
Belgium’s Old Age Pension Act of 1900 is a comprehensive scheme of assisted insurance and non-contributory pensions. It aims, first, to encourage workers to save; and, second, to help the aged by special grants. It has its own superannuation fund bank. Annuities rarely exceed $72 and are payable at 65. The pensions are graded according to the age of the insured, and at last accounts nearly a million, or one-eighth of the population, benefited.
France has a voluntary, contributory old-age insurance system administered through a national bank with a state guarantee, which goes back to 1850 but has been much perfected by subsequent legislation. It differs only in detail from the Belgian scheme. The amount of the insurance is not less than $12 or more than $48 a year and may be given in money, hospital service, or provisions. The permissible pension age in France is now 65.
Since 1898 Italy has had a system of voluntary, contributory insurance, subsidized by the state, which provides annuities after the age of 60 if the recipient has paid his dues for 25 years.
The chief British colonies have adopted very wise and comprehensive systems of old age pensions. New Zealand provides a maximum pension of $130 a year in monthly installments to those of 65 who are “of good moral character and have led a sober, reputable life.” Each pension is only granted for a year but is renewable upon request.
The Australian colonies, one after another, enacted old-age pension laws near the close of the first decade of the present century. These grants are made “as a right and not as a charity,” and the commissioner determines the amount of the pension within limits according to what he deems the needs of each case. A special investigation is made for each applicant.
The Canadian system (1908) differs widely from that of Australia. Its preamble states that it is to promote thrift and to encourage individual provisions for old age. The Minister of the Interior may contract with any Canadian for the sale of an annuity, between the limits of $50 and $600, although none can be payable under the age of 55. If the purchaser of an annuity dies before it becomes payable, all of it with compound interest is returned to his heirs. As this system is voluntary, very vigorous efforts were made by organizers and lecturers to bring it to the attention of, and make it attractive to, the people, and these thrift campaigns have been highly educative.
Francis A. Carman[134] tells us that the Canadian scheme, like most others, was to alleviate the universal dread of the poorhouse. It was adopted to circumvent the growing demand for the support of old age by the Government. Its unique features are: no forfeiture in case payments are interrupted or ceased, and the annuities cannot be mortgaged, seized for debt, or anticipated. Admirable as is the scheme, there have been less than two thousand to enjoy its full benefits. It has not reached the day laborer but, for the most part, only clerks and teachers.
The United States is the only nation that has no retiring system or provision for old age, even for its employees, save for soldiers and for judges of the Supreme Court, who may retire after ten years of service or on having attained the age of 75 on full salaries. Military pensions go back nearly to the Revolutionary War. There has been much legislation since. In 1908 there were no less than 951,687 pensioners who received more than $153,000,000, the survivors of the Civil War constituting 65 per cent of all. There are also retirement pensions for officers and enlisted men in the regular Army. Officers at the age of 64 must be retired, with no option, on three-fourths pay.
No American state has established any system of old age pensions, although many Southern states provide for Confederate veterans; but many states or cities have provided for firemen, policemen, teachers, and certain other public employees.