The European Union is preparing a new round of discussion on pensions, retirement savings and social protection funding, which will take place next week. Population aging and the reduction in the number of people of working age are increasing pressure on European systems, leading the European Commission, representatives of Member States and experts to seek solutions to strengthen the sustainability of pension systems.
One of the main areas under discussion is the strengthening of complementary pensions, savings mechanisms that add to the public pension. Brussels has been analyzing models such as automatic enrollment in complementary systems, where the worker enters the scheme automatically but can maintain the possibility of opting out. Aspects such as contribution levels, participation incentives, the role of employers and States, and the inclusion of groups that currently have lower coverage will also be discussed.
Self-employed workers, women and younger workers are also among the groups the EU intends to analyze, due to existing differences in access and amounts accumulated for retirement. However, these measures do not mean that Portugal will immediately change its pension rules, as this is a European debate to identify solutions that may subsequently be adopted or adapted by different Member States.
On September 9, a joint report from the EU and the OECD on social protection funding is scheduled to be presented, followed on September 10 by a more specific debate on complementary pensions. Brussels and the OECD have been analyzing alternatives to the current model, which is heavily dependent on contributions on labor income, seeking new sources of revenue and ways to distribute funding across a broader base.
