Pension Schemes

Large variations exist in the approach to pensions in EU member states. This Policy Department A study aims at providing the EMPL Committee with information about the risks and replacement rates of the different pension schemes. Vulnerable groups are less likely to contribute to individual plans or 'third-pillar' schemes, which complicates a shift in replacement rates from Pillars 1 (aimed at avoiding old age poverty) and 2 (occupational schemes) to Pillar 3. Pillars 1 and 2 should ensure pension adequacy, leaving Pillar 3 as a tool for individuals to enhance their replacement rates.