The ‘ageing’ of the EU population, as well as the financial and economic crisis, has affected public pension provision. Public pension expenditure in the EU is expected to increase from 2010 to 2060 by 1.4 percentage points, to 12.7% of GDP. However over the same period, the average replacement rate (public pension benefits as a percentage of earnings) is expected to decrease by 19%. As a result, supplementary pensions will increasingly be needed to complement public benefits and to ensure an adequate replacement of income after retirement for most workers.
Net replacement rates for average earner by source, selected MS
Net replacement rates for average earner by source, selected MS
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