European countries need to encourage later retirement and build private pension savings in order to make their pension systems more sustainable, Aon, the employee benefit consultancy, said on Sunday.
Publishing its latest ranking of EU countries, with Denmark, Ireland, the Netherlands and the UK reckoned to have relatively robust positions, but with France, Greece and Belgium still facing serious problems over affordability and sustainability, Aon said the best-placed countries had the most people aged between 55 and 64 still in work, and the most significant privately funded pensions.
But Aon conceded its European pensions barometer also illustrated the "unavoidable tensions" over pension policy in Europe as the population aged.
"Where countries have a state pension system that is affordable, the pension tends to be inadequate, and vice-versa," Paul McGlone, an international partner with Aon, said. At the same time, greater longevity meant companies were becoming increasingly worried about the liabilities they were taking on in promising employees pensions.
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