Most Europeans think state pensions will become unaffordable, polling shows

"Most Europeans believe their country's state pension system will soon become unaffordable but they also think the current scheme is not generous enough, and do not support options for overhauling it such as raising the retirement age. As populations age and fertility rates decline, Europe's pay as you go state pension systems, cornerstones of the welfare state that have always relied on people in work paying the retirees' pensions, are coming under increasingly heavy pressure."

"Many people acknowledge state pension schemes are in trouble: majorities of between 61% and 52% in Italy, France, Germany and Spain said theirs was already unaffordable, as well as 45% of respondents in Poland. In the UK the figure was 32%. Looking to the future, people were even more pessimistic: majorities or near-majorities (49%66%) in all six countries said they thought that by the time people currently in their 30s and 40s retire, their country's system would be unaffordable."

"However, while they acknowledged the unsustainable cost, majorities of between 53% and 83% in all countries felt the amount that retirees receive was too low, with that sentiment even stronger (72-88%) among those actually getting it: pensioners. chart 2 Most European pensioners rely on a state pension for their retirement income and in all six countries, majorities of those still in work ranging from 57% in Germany and the UK to 72% in Italy were not confident they would have a comfortable retirement."

Populations are aging and fertility rates are declining, putting pay-as-you-go state pension systems under pressure. Majorities between 61% and 52% in Italy, France, Germany and Spain said their systems were already unaffordable, with 45% in Poland and 32% in the UK. Near-majorities (49–66%) across six countries expect systems to be unaffordable by the time people now in their 30s and 40s retire. Retirees are more optimistic; 62% of UK pensioners view the state pension as affordable versus 27% of non-retired. Majorities (53–83%) judge payouts too low, rising to 72–88% among pensioners. Most pensioners depend on state pensions, and 57–72% of workers lack confidence they will have a comfortable retirement. Many oppose reforms such as raising the retirement age.

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