EC projection for 2060: Pillar I pension will decrease in all EU countries, except for Luxembourg and Denmark
The most recent report published by the European Commission, "The ageing of the EU - implications for pensions", has a bleak conclusion: Europe's population is ageing and, as far as pension costs are concerned, their share in GDP will reach 11.2% in 2060, compared with 11.3% in 2013, Falco VALKENBURG, Chairperson Pensions Committee, Actuarial Association of Europe, OPSG Member EIOPA, declared during the Private Pensions Workshop at FIAR 2017.
"What are the main factors that lead to this ageing process? The European Commission discovered three elements. The first is fertility. The number of children being born is low and it will continue to decrease in almost all European countries. The second element refers to the longer life spans - we live longer and the lifespan will continue to increase, which costs money, one way or the other. The third element is the migration tendency. If we look at the study, in Luxembourg's case, for example, the population will double due to migration", Falco VALKENBURG pointed out.
Another negative aspect is the ratio between active persons and pensioners. "If we look at EC's conclusions, in the future, in Europe, this ratio will grow, meaning that less active persons will finance a pensioner. There will be pressures regarding the financing of the pension system", Falco VALKENBURG explained.
One of the measures taken by other states is increasing the pension age, to obtain an equilibrium of active persons versus pensioners.
Author: Vlad BOLDIJAR
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