The Reform of Retirement Income Provision in the EU
E. Philip Davis
This paper studies the issues raised for retirement income provision
in the EU by the “fundamental” issues of the established structure of
pension systems and population ageing on the one hand, and the
processes of completion of the Single Market and of Monetary Union
(collectively known as Economic and Monetary Union) on the other.
Broadly speaking, the fundamental influences are considered to be the
most decisive. In a nutshell, the scope and generosity of social security
retirement pensions prevalent in most EU countries is unsustainable in
the light of the inevitable future ageing of the population. Reform of current
structures, and ideally their partial replacement by a funded system is vital.
Moreover, although the ageing of the population is only expected to accelerate
markedly after 2010, early action is to be recommended, not least because
delay will increase the likely amplitude of political opposition to reform
(as the weight of the elderly in the electorate will increase).