| Author (Corporate) | European Commission |
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| Series Title | COM |
| Series Details | (2012) 55 final (16.2.12) |
| Publication Date | 16/02/2012 |
| Content Type | Policy-making |
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An ageing population presents a major challenge to pension systems in all Member States. Unless women and men, as they live longer, also stay longer in employment and save more for their retirement, the adequacy of pensions cannot be guaranteed as the required increase in expenditure would be unsustainable. By 2060, the life expectancy at birth for males is projected to increase by 7.9 years and by 6.5 years for females, when compared to 2010. And the problem is not far-off – it is upon us now as the baby-boomers retire and the working age population of Europe begins to shrink. Together, longevity growth and the transition into retirement of the baby-boomers will have far-reaching economic and budgetary consequences in the EU, reducing the economic growth potential and exercising pressure on public finances. These prospects are further aggravated by the current financial and economic crisis. Sluggish economic growth, budget deficits and debt burdens, financial instability and low employment have made it harder for all pension systems to deliver on pension promises. Pay-as-you-go pension schemes are affected by falling employment, and hence lower pension contributions. Funded schemes are affected by falling asset values and reduced returns. It has thus become more urgent than ever to develop and put in place comprehensive strategies to adapt pension systems to changing economic and demographic circumstances. The challenges are massive, but surmountable, provided the right policies are put in place. Reforms of pension systems and retirement practices are essential for improving Europe’s growth prospects, and they are urgently required in some countries as part of current actions to restore confidence in government finances. This White Paper reflects these common concerns about problems in our pension systems and sets out an agenda for making pensions adequate and sustainable in the long term, by creating the conditions for a high level of labour force participation of women and men throughout their lives and enhancing the opportunities to build up safe complementary retirement savings. It suggests forward policy orientations and initiatives at the European level through which the EU can support national policy makers in their efforts to address reform needs, notably those highlighted in the Annual Growth Surveys 2011 and 2012 and specified in the 2011 country-specific recommendations. This White Paper also reflects the results of the wide-ranging consultation launched by the Green Paper Towards adequate, sustainable and safe European pension systems. Hundreds of stakeholders, as well as the European Parliament, the European Economic and Social Committee and the Committee of the Regions, have responded to this paper and expressed their expectation for pension issues to be addressed at the EU level in a comprehensive and coordinated way. |
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| Source Link | Link to Main Source http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0055:FIN:EN:PDF |
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| Subject Categories | Employment and Social Affairs |
| Countries / Regions | Europe |
