– By 2060, pay-as-you-go pension plans will converge towards a replacement rate (amount of pension received expressed as a percentage of the pre-retirement income) that on average will be no more than 40% of wages according to the projections taken with comparable macro-economic data. In France, the replacement rate is estimated at 48% for 2060, compared with 63% in 2007. In Italy, the change would be from 68% in 2007 to 47% in 2060. In Germany, from 51% to 41%. In Poland, from 56% to 26%. In 2060, the replacement rate will be 37% in the United Kingdom and 32% in the United States.
– The EU pension shortfall is estimated at 100% to 200% of the European Union’s GDP.
– As such, there is no other choice than to increase the number of years spent working and to encourage part-time work in retirement. The example of the United States reveals that one third of pensioners’ income already comes from work, i.e. a greater percentage than from savings, which must nevertheless be increased rapidly.
– Local company pension savings schemes are hindered by overly restrictive guarantee requirements.
– Pan-European pension funds will not be a solution in themselves. Of the 140,000 pension funds surveyed in the 27 EU countries, just 78 came under the IORP directive at the end of 2010.