"In countries with ageing populations, there's a growing likelihood that many of us will be. But behind the dream of a cosy retirement, the economic reality is ever more complex. As populations age, the number of younger people entering the workforce is shrinking and that's a big problem for pay as you go state pension schemes where employees fund the pensions of an expanding cohort of retired people."
"Confusingly, a new poll of six European nations reveals how most voters can see this problem and realise their state pensions will soon become unaffordable. But at the same time, they also believe state pensions are too low, and are unwilling to support reforms to them. Where do governments under increasing pressure from populists go from here? For our first big story of 2026, the Guardian's Europe correspondent, Jon Henley, reports on a ticking timebomb for the continent's social contract."
Ageing populations are reducing the number of younger people entering work, threatening the solvency of pay-as-you-go state pension schemes that rely on current employees to fund retirees. A poll across six European nations finds most voters recognise that state pensions will soon become unaffordable while simultaneously viewing current pensions as too low and opposing reforms to sustain them. The combination of financial strain and popular resistance to change increases political pressure on governments and creates a risk to the social contract as populist forces exploit public dissatisfaction over pension adequacy and affordability.
Read at www.theguardian.com
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