European citizens need to work longer to stay solvent in retirement

5 Oct 15

Europeans must work until they reach a state pension age of 65 if they are to receive an adequate retirement income, according to a European Commission report. 

The 2015 Pension adequacy report looks also into all forms of old age income – public as well as private – for men and women across the European Union.

It concluded that employment policies across the 28 member states should encourage older workers to stay in the labour market for longer. But it added that pension systems must also provide protection for those who are unable to remain in work long enough to build up sufficient pension entitlements.

“Recent pension reforms have focused on ensuring pensions for a much larger older population without destabilising public finances,” said Marianne Thyssen, commissioner for employment, social affairs, skills and labour mobility.

“This can only be achieved if the great majority of people are offered enough opportunities to keep on working until they reach the regular retirement age that is set to rise across the EU. Our priority must be to invest enough in people’s skills and health to enable them to use such opportunities.

“We also need solidarity with those who cannot and may need to rely on unemployment or invalidity benefits before reaching the retirement age.”

Member states have adopted many pension reforms to control the increase in spending on public pensions.

The commission’s report acknowledged that most EU countries were increasing the pensionable ages of both men and women, but some needed to do more. 

  • Judith Ugwumadu
    Judith Ugwumadu

    Judith writes about public finance, public services and economics across Cooking Recipes International and Cooking Recipes. She previously undertook reporting stints at Financial Adviser, Global Security Finance and The Sunday Express.

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