The European Court of Auditors has reported that the European Union has not made significant progress in increasing occupational, or employer-sponsored, pensions to ensure adequate retirement income for its citizens. This conclusion comes from a recent audit by the institution.
Occupational pensions are set up by employers for their employees and come in two main forms: defined-benefit and defined-contribution schemes. The significance of these non-state pension products varies across EU countries. In some nations, they provide a larger share of retirement income than state pensions.
Institutions managing these top-up pensions within the EU are estimated to hold around €2.8 trillion in assets and serve about 47 million workers and pensioners. However, this industry is concentrated in a handful of EU countries, while in others it is either minimal or nonexistent. For example, in Denmark and the Netherlands, assets managed by occupational pension institutions exceed national GDP.
Despite efforts to create a pan-European pension product designed to offer a portable cross-border option for workers since March 2022, uptake remains low with few such products available on the market as of 2025.
The European Court of Auditors emphasizes the importance of access to comprehensive pension information for citizens nearing retirement age. According to its findings, “As auditors, we believe that access to comprehensive pension information is essential for citizens as they approach retirement. However, EU plans to improve transparency have borne little fruit. The fact is that there is still no overview of state, occupational and personal pensions, which would help individuals understand their total future retirement income. As regards occupational pensions, contributors and beneficiaries do not enjoy full transparency regarding the performance of the underlying funds, including the costs to workers and the returns for retirees. This is crucial, because some pensions depend on investment performance.”
To address these issues and discuss how EU policies on top-up pensions can be improved, an online event will be held on September 22 with participation from national ministries, the European Commission, the European Insurance and Occupational Pensions Authority, occupational pension funds and experts.
“In our online event on 22 September, we will talk with key players in the field, including from national ministries, the European Commission, the European Insurance and Occupational Pensions Authority, occupational pension funds, and pension experts. We are convinced that their expertise and insights will be essential for a meaningful exchange on how to make EU policies in the area of top-up pensions more effective,” said representatives from the European Court of Auditors.
The Court also noted that many people remain unaware of how much they will receive upon retirement or what sources their income will come from.
“So far, the EU has not had much success at boosting top-up pensions to ensure adequate retirement income for EU citizens. That is a fact, as confirmed by our recent audit,” according to statements from auditors at the institution.
The event aims to foster discussion among stakeholders about making occupational pensions more effective across Europe.