Retirement income policies and welfare state retrenchment: A comparative study of Canada, Sweden and the Netherlands

The purpose of this study was to examine the effects of welfare state retrenchment on the retirement income system in Canada during the years 1980-2000. In order to provide perspective on the Canadian experience, this study also examined the effects of retrenchment on the pension systems in the Netherlands and Sweden. The theoretical foundation for this study was supported by Esping-Andersen's (1990) welfare-state regime typology (liberal, conservative and social-democratic). To address retrenchment, this study incorporated Rice and Prince's (2000) model of retrenchment strategies. It was hypothesized that: 1) there is a link between regime type and retrenchment strategy pursued; and, 2) the liberal regime (Canada) will be more likely to experience retrenchment than either the conservative (the Netherlands) or social-democratic (Sweden) regimes. Contrary to these predictions, it was found that while all three countries did experience retrenchment, the Netherlands experienced the most retrenchment.