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People have to work longer to receive adequate pensions in view of increased life expectancy, writes Trud bg.
Pension systems can maintain a longer working life by adjusting the retirement age or seniority requirements.
Another step is to limit early retirement to objectively justified cases.
This is stated in a Green Paper on the aging of the European population presented by the European Commission.
A 12-week public discussion period begins and the proposals will be converted into measures to address demographic trends.
The document also states that establishing a common right to work after retirement age and flexible retirement plans can help make pension systems adequate and sustainable.
According to the European Commission, the lack of new reforms, an increase in retirees and fewer people of working age will lead to higher contributions to pensions to ensure the sustainability of public finances.
This will create a double burden for the younger generations. The key solution to this problem is a longer working life, says the Green Paper.
He cites Eurostat’s latest forecast that if working life is extended to 70 years, it will keep the working-age population until retirement age in 2020 for the next 20 years.
However, the report states that the working age should be raised differently in different countries. In Malta, Hungary and Sweden, for example, people have to work up to 68 years, while in Lithuania and Luxembourg, up to 72 years.
Pensions that allow a decent standard of living in old age should also be affordable for those who will not be able to have a longer working life, the authors of the document note.
This can be achieved, for example, through pension loans, minimum pensions and social benefits for the elderly.
Attention is also paid to supplementary pension insurance.
According to the EC, high-quality, safe and profitable supplementary pensions, added to statutory pension plans, can provide additional savings.
For most people, retirement comes with a drop in income and for some with the threat of poverty in old age. The risk remains higher for specific groups, such as women and migrants.
Pensions for women in the EU are on average 29.5% lower than those for men, according to the report.
Sofia, Bulgaria
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