Overview
- Countries are rolling out varied reforms to shore up pay‑as‑you‑go systems that pay current retirees with current workers’ contributions.
- Germany has proposed an additional mandatory savings contribution equal to 2% of salary to shift some pension costs onto workers.
- The United Kingdom has signalled a policy shift under Prime Minister Andy Burnham to curb automatic pension uprating that added billions to annual costs.
- Spain faces a record future pension bill that officials warn will raise spending sharply as baby‑boom cohorts retire, increasing pressure to change funding rules.
- Experts say the likely effects are higher costs for current workers, later retirement for some groups, and slower growth in benefits, with countries choosing different mixes of savings requirements, later access and indexation changes.