Do Europeans have faith in the future of their pensions once they retire?
By Inês Trindade Pereira (https://www.euronews.com/profiles/2934) & video by Damaso Jaivenois
Published on 07/01/2026 - 9:53 GMT+1
As the demographic shift in the EU leads to an aging population, many individuals across France, Germany, Spain, and Italy are expressing doubts about the sustainability of their state pension systems. A significant concern has emerged: a large number of citizens perceive their countries' pension schemes as financially strained and worry they may not be able to support future retirees.
But here's where it gets controversial... Despite these worries, there is a prevailing sentiment among the populace that the current pension provisions are inadequate. Notably, a recent YouGov survey reveals that many respondents do not favor increasing the retirement age as a potential solution to improve the system.
According to a report from the OECD, Greece and Italy allocate the highest percentage of their national income to public pensions among member countries, approximately 16% of their GDP. This financial commitment is followed closely by Austria, France, and Portugal, which devote between 13% and 14% of their budgets to pensions.
A notable finding from the survey indicates that two-thirds of participants in France, Germany, and Spain believe that the state pension structure will become unaffordable for those currently in their thirties and forties by the time they reach retirement age. Interestingly, retired individuals tend to be more optimistic about the sustainability of their countries' pension systems compared to their younger counterparts.
Is there any agreement on how to address this pressing issue?
Over 70% of Italians and Poles who have not yet retired lack confidence in their ability to enjoy a comfortable retirement. Among the French and Spanish, those figures stand at 66% and 64%, respectively. While there is a common understanding of the challenges confronting state pensions, enthusiasm for potential remedial measures is surprisingly low.
Preferred solutions among both retired and working individuals across five EU member states include strategies to assist older workers in remaining in their roles longer instead of retiring, and implementing a legal obligation for working-age individuals to contribute to private or workplace pension schemes or savings plans. Polish respondents showed particular support for initiatives to help older workers, whereas Germans favored the idea of mandatory contributions to private pensions.
Italy’s stance was unique in that it was the only country advocating for the reduction or complete elimination of state pensions for high-income retirees. On the other hand, raising tax rates for working individuals, cutting back funding for government services aimed at assisting older adults, and lowering the state pension amounts for all retirees were the least favored options.
What strategies does the EU have in place to confront this challenge?
In most EU nations, state pensions follow a pay-as-you-go model, where current employees fund the pensions of present retirees. However, with a declining working-age population and the rise of non-traditional employment, many citizens in various member states are left uncertain about their prospects for receiving adequate pensions in the future, a situation that disproportionately affects women. The gender pension gap, which measures the disparity in average pension income between men and women, stands at a striking 24.5%.
To address these issues, the European Commission has proposed a two-pronged strategy aimed at enhancing retirement savings and mobilizing up to €10 trillion in bank deposits throughout the bloc. This initiative is designed to bolster key EU priorities, particularly in areas such as defense, security, and the transitions toward digital and green economies (https://www.euronews.com/my-europe/2025/11/20/eu-urges-capitals-to-improve-citizens-private-pension-options-as-pressure-on-state-schemes).
What do you think about these findings? Do you agree or disagree with the proposed solutions, or do you have alternative ideas to address the looming pension crisis in Europe? Share your thoughts in the comments!
