Towards a European Pension Policy? The Possible Impact of the European Commission's Green Paper ‘Towards Adequate, Sustainable and Safe European Pension Systems’ on National Pension Strategies

Abstract

The Green Paper provoked angry headlines after fixing 70 as the compulsory retirement age and reducing pension income. This article outlines some ideas and findings for developing pension issues at the EU level and examines possible impacts on national pension systems. The recent financial crisis showed the deficiencies of capital-funded pensions. Discussions at EU levels should to consider unemployment, childcare or taking care of frail persons in achieving adequate pensions. The question arises as to whether earnings-related schemes as main source of income in old age are still feasible. Different taxation of retirement pensions, additional contributions for healthcare, long-term care and the lack of coordination rules for supplementary pensions may impede free movement. Better coordination is needed. EU wide solutions for pension systems seem inevitable in a converging Europe for reasons of social cohesion and competition. There should be a minimum standard for all European citizens in old age that guarantees sufficient financial means, adequate healthcare and access to professional long-term care.