Most Europeans believe their country’s state pension system will soon become unaffordable – but they also think the current scheme is not generous enough, and do not support options for overhauling it such as raising the retirement age.As populations age and fertility rates decline, Europe’s “pay as you go” state pension systems, cornerstones of the welfare state that have always relied on people in work paying the retirees’ pensions, are coming under increasingly heavy pressure.
With attempts to reform them meeting stiff and sometimes violent resistance in countries including France, Germany, Spain and Italy, a six-country YouGov poll reveals the extent of the public-opinion problem governments face.
Many people acknowledge state pension schemes are in trouble: majorities of between 61% and 52% in Italy, France, Germany and Spain said theirs was already unaffordable, and also 45% of respondents in poland. In the UK the figure was 32%.Looking to the future, people were even more pessimistic: majorities or near-majorities (49%-66%) in all six countries said they thought that by the time people currently in their 30s and 40s retire, their country’s system would be unaffordable.
Retirees were more optimistic about their country’s capacity to fund its state pension system. Pensioners in the UK were notably upbeat, with 62% saying they think the UK state pension is affordable, against only 27% of their non-retired counterparts.
However, while they acknowledged the unsustainable cost, majorities of between 53% and 83% in all countries felt the amount that retirees receive was too low, with that sentiment even stronger (72-88%) among those actually getting it.
European Survey Reveals Resistance to Pension Reforms, Support for Wealth-Based Solutions
A recent survey across six european countries – France, Germany, Italy, Poland, Spain, and the UK – reveals significant public opposition to common proposals for addressing the financial challenges of aging populations.The survey, conducted by The Guardian, found widespread resistance to raising the state pension age, increasing taxes on workers, and reducing pension benefits. However, there is notable support for solutions that place a greater financial burden on wealthier pensioners and encourage continued employment for older workers.
Opposition to Traditional Reforms
The survey consistently showed net opposition to several standard austerity measures. A majority or near-majority in all six countries opposed raising the state pension age, ranging from 47% in France to 65% in Germany. This resistance comes despite growing concerns about the sustainability of state pension systems in the face of demographic shifts.
Specifically, preferences for the current or desired state pension age varied:
* UK: 45% favored age 65, 20% favored 60.
* France: 22% favored 62 (the current age, following the suspension of a planned increase to 64).
* Poland: 38% favored 60.
* Italy: 22% favored 60.
* Germany: 65% opposed raising the retirement age.
* Spain: Data not explicitly provided in the source, but included in the overall survey.
Reducing the amount of the state pension also faced overwhelming opposition, ranging from 61% in Italy to 81% in Germany. This suggests a strong belief in the importance of maintaining existing pension levels.
Support for Choice Approaches
While traditional reforms met resistance, the survey identified some areas of potential consensus. A significant proportion of respondents supported measures that shift the financial burden towards those with greater means.
* Private/Workplace Pensions: There was support for legally obliging working-age people to contribute to private or workplace pension schemes, particularly in the UK (57%), where automatic enrollment schemes are already in place. Germany (49%) and France (41%) also showed considerable backing for this idea. The UK’s automatic enrollment scheme was introduced in 2012 and has significantly increased pension participation.
* Supporting Older Workers: The idea of providing support for older workers to remain in their jobs longer was also relatively popular, ranging from 57% in Poland to 27% in italy. This suggests a willingness to explore options that extend working lives rather than solely focusing on raising the retirement age.
* Wealth-Based Solutions: A clear majority of Italians (66%) supported higher taxes on better-off pensioners to fund improved pensions for those with lower incomes. Moreover, 52% of Italians favored denying state pensions to high-income retirees. Across all six countries, a larger percentage of respondents (28% to 55%) believed that wealthier retirees should contribute more to funding state pensions than younger generations (15% to 31%).
Generational and Demographic Divides
The survey highlighted predictable divisions in opinion. Retirees generally opposed reductions in pension payments, while working-age individuals largely rejected proposals to raise the state pension age or increase taxes on their age group. This underscores the inherent challenges in designing pension reforms that are perceived as fair and equitable across different generations.
This survey provides valuable insights into public sentiment regarding pension reform in Europe. The strong resistance to traditional austerity measures suggests that policymakers will need to consider alternative approaches, such as wealth-based solutions and policies that support continued employment, to address the long-term sustainability of state pension systems.
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