EU Green Paper on Pensions

8 July 2010

EU Green Paper on Pensions

The European Commission has called for public consultation on how the EU can best support national efforts to ensure an "adequate, sustainable and safe" pension system.

Presenting the Green Paper today, László Andor, EU Commissioner for Employment, Social Affairs and Inclusion, said the current number of retired people in Europe, compared with those financing their pensions, was set to double by 2060.

This, he said, was "simply not sustainable".

"In addressing this challenge, the balance between time spent in work and in retirement needs to be looked at carefully," he added.

"The choice we face is poorer pensioners, higher pension contributions or more people working more and longer."

The Commission's Green Paper on pensions aims to address the following issues:

  • Ensuring adequate incomes in retirement and making sure pension systems are sustainable in the long term
  • Achieving the right balance between work and retirement
    Removing obstacles to people who work in different EU countries
  • Making pensions safer in the wake of the recent economic crisis
  • Making sure pensions are more transparent so people can take informed decisions about their own retirement income

The Commission has invited all interested parties to respond to the Green Paper by 15 November.

The European Federation for Retirement Provision (EFRP), which represents national associations of pension funds and similar institutions for workplace pension provision, gave the paper a "thumbs up".

Angel Martinez-Aldama, chairman of the EFRP, welcomed the fact the Commission was consulting on the pension systems of all EU member states.

Chris Verhaegen, secretary general at the EFRP, said the Green Paper presented the opportunity to come to grips with the existing diversity of workplace pension provision in the EU, adding that any legislative initiatives should "only be started after the Commission has drawn its conclusions".