Life expectancy is expected to rise by another 5 years the coming decades. In 2060 men on average are expected to live until age 87 and women until age 90.

The old-age dependency ratio will increase from 25% to over 50% in 2060. This means that the number of people of working age will decline from 4 to 2 for every pensioner.

The statutory retirement age stands at 65 in many countries and is frequently lower for women. Many Member States have decided to raise the retirement age. For example: Germany increased to 67 between 2012-2029; Denmark increased to 67 between 2024-2027; United Kingdom increased to 68 between 2024-2026.

The effective retirement - on average 61 years in the EU-27 – is often well below the statutory retirement age. Only 49% of people aged 55-64 still participate in the labour market.

State pay-as-you-go pensions are projected to decreasel by 20% until 2060. Replacement rates will decline from 50% to only 40% of average wages.

The financial crisis has eroded public finances, triggering additional austerity measures. Budget deficits average 7% of GDP and public debt is rapidly approaching the 100% GDP mark.

Only 40% of Europeans are covered by a supplementary workplace pension scheme. Participation in various countries ranges from a few percent to nearly full coverage.

European workplace pension institutions manage approximately € 3500 bn to pay out future workplace pensions.

Bulgaria, Croatia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia have introduced the last decade second pillar mandatory privately managed pension systems.

France too has stepped into a capital funded pension scheme for the workplace: the PERCO plan. Launched in 2005, already more than 93.000 employers are offering a PERCO plan to their employees.

In Germany 5 financial vehicles exist to operate workplace pillar pensions: Pensionfonds, Pensionskassen, Book-reserves, Direktversicherung, Unterstützungskassen.

In Ireland there exist 84.246 work-related pension schemes of which 83.146 schemes have less than 50 scheme members.

The EFRP brings together large and small pension institutions in Europe. Our Members range from ABP managing the workplace pension of 2,8 million Dutch citizens and the Council of Civil Service Unions pension scheme in the UK which has only 18 members.

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