Many people in Europe are concerned that their country’s state pension system might not be sustainable in the near future. Interestingly, while they perceive the current system as insufficiently generous, they are hesitant to support significant changes, like increasing the retirement age.
With aging populations and declining birth rates, the pay-as-you-go model that underpins many welfare states is becoming increasingly strained. This system heavily relies on the current workforce to fund the pensions of retirees.
Attempts to reform these systems have encountered strong pushback—sometimes even violent—from countries such as France, Germany, Spain, and Italy. A recent poll conducted across six nations illustrates the significant public opinion challenges facing governments.
Many citizens are aware that their state pensions are in jeopardy. In Italy, France, Germany, and Spain, over half of respondents—between 61% and 52%—believe their systems are already unaffordable. In Poland, the number stands at 45%, while the UK reports a lower figure of 32%.
Looking ahead, the outlook appears grim. A majority or almost half of respondents in all six countries—from 49% to 66%—think that their pension systems will be depleted by the time people currently in their 30s and 40s retire.
Interestingly, retirees seem to have a more optimistic view about the sustainability of their respective pension systems. For instance, 62% of retired Britons believe the UK state pension is affordable, compared to just 27% of non-retired individuals.
Despite recognizing the unsustainable nature of current costs, most people, from 53% to 83% across all countries, feel that the benefits retirees receive are inadequate. This sentiment is particularly pronounced among pensioners themselves, with 72% to 88% expressing that their benefits aren’t enough.
State pensions are a primary source of income for most retirees across Europe. However, there’s a noticeable lack of confidence among the workforce regarding their own retirement prospects, especially in Italy where 72% don’t feel assured about a comfortable future.
When asked about potential reforms to ease the financial strain on public pension systems, there was significant hesitance to accept many of the changes that governments propose.
Survey findings indicate a general disapproval of raising the state pension age in all six countries. The idea of increasing taxes on working-age groups or expecting them to support their retired parents also faced resistance.
There’s a strong opposition to raising the retirement age, with a majority—ranging from 47% in France to 65% in Germany—rejecting the idea of making individuals wait longer for their pensions. Some, like 20% in the UK and 38% in Poland, believe that 60 should be the state pension age, while others advocate for 65. In France, a plurality thinks it should remain at 62, the current age since the planned increase to 64 was dropped.
Opposition is even more pronounced against reducing pension amounts, with figures showing 81% in Germany and 61% in Italy against such cuts. However, some support exists for mandatory private or workplace pensions among working-age individuals.
This proposal has garnered the most support in the UK, where 57% favor such measures. Germany and France follow, with 49% and 41%, respectively, supporting the idea.
There’s also a noticeable preference for policies aimed at helping older workers remain employed rather than retiring, with approval ratings ranging from 57% in Poland to 42% in Germany and France, and dropping to 27% in Italy.
Italians, in particular, show strong support for taxing wealthier retirees to improve pensions for those with lower incomes, with 66% backing higher taxes for affluent pensioners and 52% in favor of withholding state pensions from high-income retirees.
In general, responses from pensioners and working people reflect their own interests. Retirees are typically against cuts in benefits, while those in the workforce largely oppose raising the retirement age or increasing taxes on their demographic.
