you're reading...
Economic and Social Policies, PUBLICATIONS

Occupational pensions: ‘Second pillar’ provision in the EU policy context

The ageing population in the European Union and the effects of the financial and economic crisis have strained the sustainability of public pension schemes in Member States (MS). To ensure adequate incomes for people after retirement, many MS are putting increasing emphasis on supplementary forms of retirement income. These include occupational pension schemes that provide retirement income based on employment earnings during working life.

Coins in the jar

© Lucian Milisan / Fotolia

Whilst MS are responsible for the design of their pension systems, occupational pensions affect, or are affected by, various EU policies and concerns. Free movement of workers means that workers should preserve rights in occupational pensions when they move to another MS. EU-wide companies need cost-efficient ways to provide pensions to workers in different MS. The European Commission has proposed, or will, improvements in both areas.

Workers also need cost-effective protection against risks (including employer insolvency) and reliable pension information to make good retirement decisions. Increasing reliance on occupational pensions may put women at risk of poverty in old age.

Though MS will continue to support a very wide variety of approaches to occupational pensions, the EU can contribute to ensuring that citizens enjoy an adequate and sustainable income in old age.

Read the complete briefing here

Numbers of private pension plans products in EEA by type - occupational or personal, DB or DC


Net replacement rates for average earner by source, selected MS


No comments yet.

Leave a Reply

Download the EPRS App

EPRS App on Google Play
EPRS App on App Store
What Europe Does For You
EU Legislation in Progress
Topical Digests
EPRS Podcasts

Follow Blog via Email

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 3,549 other subscribers

Disclaimer and Copyright statement

The content of all documents (and articles) contained in this blog is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.

For a comprehensive description of our cookie and data protection policies, please visit Terms and Conditions page.

Copyright © European Union, 2014-2019. All rights reserved.

%d bloggers like this: