Ministers of Employment and Social Affairs have adopted council conclusions on pension adequacy, following the publication of the 2024 Pension Adequacy Report, drafted by the Commission and the Social Protection Committee.

The report highlights that European pension systems have protected retired Europeans’ living standards in the face of global challenges. Resilient public pensions, indexation, and redistribution mechanisms have maintained pension adequacy during crises.

However, pensions are predicted to decrease, calling for reinforced policies to promote longer careers, healthy ageing policies, inclusive labour markets, and greater flexibility in retirement pathways. The report calls for further reforms to ensure fair retirement security for all and prevent socio-economic inequalities from increasing with age, amid demographic and labour market changes.

The Pension Adequacy Report has two volumes:

• the first analyses the EU’s overall pension adequacy and the impact of recent crises on pensioners' living standards
• the second provides detailed profiles of pension systems in each of the 27 Member States and Norway

Main findings

Women in the EU receive on average 26.1% lower pension income than men, and 5.3% of women receive no pension at all. These gaps stem from gender pay differences, shorter or interrupted careers, and more part-time work. Pensions of formerly self-employed workers are projected to be one-third lower than those of full-time employees with similar career lengths.

Part-time or fixed-term workers also struggle with low earnings and fewer opportunities to build pension entitlements. For people with severe care needs, long-term care costs can exceed pension income, highlighting the need for comprehensive social protection support.

Background

Ensuring adequate old-age income is crucial to achieving the 2030 EU target of lifting at least 15 million people out of poverty and social exclusion. The EU supports national policies addressing poverty, gender inequalities, caregivers, access to quality care, and adequate social protection for older people.

Implementing the Council Recommendation on access to social protection and the Council Recommendation on affordable high-quality long-term care is essential to maintaining decent living standards for older Europeans.

The 2024 Pension Adequacy Report will be discussed, along with the 2024 Ageing Report, at the upcoming conference on longevity in Europe on 27 June 2024.