Aon Consulting’s Eurometer highlights topical issues in the fields of employment and employee benefits and focuses on comparisons among the 25 EU countries. Recent Eurometer results addressed the significant differences in state pension costs within the EU. Key findings included:
♦ Although each country has a state pension, the schemes vary significantly. Yet they are all financed on a “pay as you go” system, and the working populations meet the costs. As long as the ratio between working people and pensioners remains constant, this system works well. However, as soon as the ratio of pensioners to workers increases, the costs of state pensions rise.
♦ Retirement age varies from 55 to 65, and some countries have different arrangements for men and women.
♦ Unemployment ranges from 2% in Luxembourg to 25% in Poland. Higher unemployment rates mean fewer people are working to pay for state pensions.
♦ The number of people entitled to a state pension in each country relative to the number of working people differs enormously; for example, with 63 retirees for every 100 workers (63%), Slovakia has the highest state pension burden. The number of pensioners is growing steadily and the birth rate is declining in the region, resulting in fewer working people.
See full Report, in pdf format.
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