The discussion on the sustainability of pensions has returned to the center of the European debate, with a Portuguese European commissioner defending new complementary instruments. In a context of reforms at possible risk, the European Commissioner proposes to reinforce mechanisms that channel savings to the markets and create additional solutions for future pensioners.
The recommendation defended by European Commissioner Maria Luís Albuquerque encourages Member States to create frameworks for complementary private pension funds. The objective is to offer workers the possibility of deducting part of their salary for an additional plan, to have the possibility of earning “extra income” in retirement, without changing the public regime, says Expresso.
Automatic but voluntary
The suggested model includes the automatic enrollment of workers in plans made available by employers. Participation remains voluntary, allowing those who do not wish to join the system to leave.
The recommendation covers large companies, SMEs and the public sector, seeking to ensure broad and not restricted access to specific segments of the labor market. To promote adherence, the creation of tax incentives aimed at companies and workers is advocated, reports the .
Capital markets at the service of long-term savings
In parallel, the Commission proposes adjustments to pension fund management rules, with the aim of reducing costs and removing unnecessary restrictions. The intention is to facilitate long-term investments in infrastructure, venture capital and private equity, accepting the direct relationship between higher return and higher risk, but without promoting unsuitable risk profiles.
System sustainability without changing the public regime
The commissioner emphasizes that the proposal does not intend to replace state-managed pensions or change Social Security rates. The public pillar remains the basis of the system, while the complementary plans function as an additional layer of protection, explains the same source.
Broad participation and transparency
The Commission emphasizes that the recommendation is not binding, and it is up to each country to define the most appropriate implementation. Even so, transparency in conditions, commissions and risk profile is advocated, so that participants can evaluate the available options in an informed manner.
The reinforcement of the third pillar is presented as a response to the growing gap between the last salary and the first pension, a phenomenon identified in several European economies. By encouraging savings throughout working life, we seek to mitigate future pressures and reduce income vulnerability at retirement age.
Final competence remains with the Member States, but the Commission calls for joint reflection. The call includes dialogue with social partners, supervisors and industry, to align incentives, protect savers and ensure that at-risk reforms benefit from a balanced response from the European Commissioner and national authorities.
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