Net replacement rates are evaluated for a prime-age worker (aged 40) with a “long” and uninterrupted employment record. See OECD (2007a) for full details. Finland and Germany saw the biggest reductions in net replacement rates. A decomposition of these changes (not reported) shows that in Germany, and to a lesser extent Finland, effective tax burdens on employment incomes were reduced at the same time, which further widened the gap between incomes in-work and out-of-work.