The report concludes there is a need to carefully review pension policy in the context of the aftermath of the crisis and the overall Europe 2020 vision, taking a holistic approach in view of delivering sustainable and adequate retirement incomes.
Interim Joint Report on Pensions by the Economic Policy Committee and the Social Protection Committee
There has been considerable progress in reforming pension arrangements in the last decade. While system designs differ markedly between Member States, a majority have adapted their pension systems so as to better withstand the demographic change that will start taking hold already next decade.
Despite this progress, in many EU Member States the challenge of transforming systems of pension provision to better cope with an ageing population is still very real. According to the most recent Eurostat projections, the size of the working-age population (15-64) will start shrinking from 2012. Potential economic growth will have to rely less on an increase in labour supply and more on productivity-enhancing measures. This will have far-reaching consequences for economic and budgetary developments.
On top of these prospects, the financial and economic crisis has led to a sharp deterioration in the public finances; public deficits and debt levels have increased sharply, which is putting stress also on social protection-related public spending programmes. Moreover, in the field of pensions, many private pension funds have seen their investments fall in value, and there is uncertainty as to when and to what extent these investments will be recovered.
As a result, there is a need to carefully review pension policy in the context of the aftermath of the crisis and the overall Europe 2020 vision, taking a holistic approach in view of delivering sustainable and adequate retirement incomes. This call for policy that builds on the many interlinkages between labour markets, social protection systems, financial market policies, and migration policies and develops the synergies necessary to deliver pension that are adequate and sustainable.
© European Commission
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