The European Commission today published a White Paper proposing measures at European level to support and complement national pension reforms. The White Paper proposes, in particular, to:

• Create better opportunities for older workers by calling on the social partners to adapt work place and labour market practices and by using the European Social Fund to bring older workers into work. 

• Develop complementary private retirement schemes by encouraging social partners to develop such schemes and encouraging Member States to optimise tax and other incentives;

• Enhance the safety of supplementary pension schemes, including through a revision of the directive on Institutions for Occupational Retirement Provision (IORP) and better information for consumers;

• Make supplementary pensions compatible with mobility, through legislation protecting the pension rights of mobile workers and by promoting the establishment of pension tracking services across the EU. This can provide citizens with information about pension entitlements and projections of their income after retirement.

• Encourage Member States to promote longer working lives, by linking retirement age with life expectancy, restricting access to early retirement and closing the pension gap between men and women.

• Continue to monitor the adequacy, sustainability and safety of pensions and support pension reforms in the Member States.

The Commission explained that pensions are the main income source for around a quarter of the EU's population today and younger Europeans will also come to rely on pensions later in their lives.

Unless Europe delivers on decent pensions now and in the future, millions will face poverty in old age. Europe is also ageing as people live longer and have fewer children.

From next year, the EU's working population will already start to shrink. Pensions are putting increased financial pressure on national budgets, especially with the added strain of the financial and economic crisis.  

The White Paper was presented by László Andor, EU Commissioner for Employment, Social Affairs and Inclusion who said: "Ensuring adequate pensions for the future is possible if we follow through on our commitments to reform. The impact of ageing is upon us - the baby-boomers are retiring and fewer youngsters are entering the labour market. But it isn't too late to meet these challenges”. The Commissioner added that raising retirement ages was important saying that a recent Eurobarometer survey shows many Europeans would stay in the labour market even beyond their pension age if the conditions are right.

See the white paper on clicking the pdf below