The EESC warns that expanding supplementary pensions must not weaken public pension systems and calls for a balanced approach that strengthens both systems.

In its opinion on the European Commission’s supplementary pensions package, which aims to improve retirement income while channelling more private savings into the economy, the EESC throws its support behind these goals but insists that adequacy, security and trust must come first. 

‘Supplementary pensions can play an important role, but they must complement, not weaken, public systems,’ said the opinion’s rapporteur, María del Carmen Barrera Chamorro. ‘The priority must remain clear: ensuring that everyone can retire with dignity, security and an adequate income.’

The opinion was adopted and discussed at a high-level plenary debate in April, with European Commissioner for Financial Services and the Savings and Investments Union Maria Luís Albuquerque, Spain’s Minister for Inclusion, Social Security and Migration Elma Saiz Delgado and MEP Damian Boeselager.

In the opinion, the EESC calls for supplementary pensions to be easier to access and understand, especially for people who are currently not covered. It recommends clearer rules, better information for savers and stronger safeguards. This includes clearer advice when choosing pension products and stronger supervision at EU level. Financial education and simple tools are also needed to help people understand their rights and make informed decisions.

The EESC highlights major gaps in supplementary pensions, especially between men and women, with women sometimes receiving up to 40% less from private schemes. It calls for targeted measures developed through social dialogue to improve fairness and reduce poverty risks.

While recognising the role of supplementary pensions in supporting investment and economic growth, the EESC warns against excessive risk-taking with people’s savings. It also stresses that reforms must respect the diversity of national pension systems and ensure the full involvement of employers and trade unions in the design, implementation and monitoring of workplace pension schemes.

Ms Albuquerque explained that ‘supplementary pensions are the way to help people build additional security over the long term and to support them in retirement. This is the idea behind the European Commission’s supplementary pensions package. We fully respect Member States’ competences and the central role of social practices. Our objective is to support shared practices and to help create conditions or solutions that work for people.’

Ms Saiz Delgado said that ‘Any supplementary pension schemes must be based on the principle of complementarity. Under no circumstances should they replace the state pension system. A balance must be struck here so that the development of supplementary pension schemes does not replace our responsibility to ensure adequate provision for pensioners.’ (tk)