- New findings from Aviva reveal that Europe’s pension savings gap remains a growing issue
- As European Governments grapple with public debt levels and the wider challenges of an ageing population, individuals will need to take greater responsibility for their own future retirement income
- Younger people have the greatest opportunity to address their pension savings gap by starting to save as soon as they can
LONDON, 09-Sep-2016 — /EuropaWire/ — Europe’s pension savings gap remains substantial, surpassing €2 trillion a year, at 13% of the European Union’s 2016 GDP, according to the results of Aviva’s second ‘Mind the Gap’ report.
David McMillan, Chief Executive Officer, Aviva Europe said:
“At an eye-watering €2 trillion, Europe’s annual pension savings gap is significant, growing and is now one of the most pressing long-term policy issues facing governments and individuals across the region.
“No single policy measure will close the gap alone, urgent action is required on four different fronts – building pension systems that offer stability, increasing access to pensions, better pension information, and helping individuals take informed decisions. Governments, companies and individuals can work together to bridge the gap, but there is no time for delay if we want future generations to have a secure and prosperous retirement.”
Aviva’s report analyses the additional savings that people retiring between 2017 and 2057 need every year to fill the gap between the pension they can currently expect to receive and the income required to have an adequate retirement . With 28% – or 148.3m, of Europe’s population due to be over 65 by 2060 , unless the shortfall in retirement savings is addressed, millions of people across Europe may not have a financially secure retirement, which may potentially result in a dramatically reduced standard of living.
The 2016 report reveals a mixed picture across the eight European Union countries examined. In the UK, although the pension savings gap has fallen from €379 billion (£318bn) to €365 billion (£306bn) since 2010, in part due to the success of auto-enrolment, it remains significant. In contrast, an increasing pension savings gap is emerging in countries such as Ireland, where the gap stands at €28 billion, partly due to the state pension freezing between 2010 and 2015. In Spain, the pension savings gap has increased to €192 billion, due to caps on increases to the state pension and an increased number of people expected to retire in the future. Spain faces one of the biggest savings challenges with the annual savings gap reaching 17% of GDP.
Pensions saving gap by country
Country |
2016 Pensions Savings Gap (€ billions) |
2010 Pensions Saving Gap (€billions) | Difference 2010/2016 % | Annual Pension savings Gap as % of country’s GDP |
Germany | 461 | 469 | -2 | 15 |
UK | 365 | 379 | -4 | 13 |
France | 241 | 244 | -1 | 11 |
Spain | 192 | 171 | 12 | 17 |
Turkey | 125 | 91 | 38 | 19 |
Italy | 99 | 98 | 1 | 6 |
Poland | 65 | 69 | -6 | 14 |
Ireland | 28 | 20 | 38 | 13 |
Lithuania | 5.4 | 5 | 9 | 13 |
EU28 | €2.01 trillion | €1.9 trillion | 6 | 13 |
Note: The pensions saving gap figures are nominal and are not inflation adjusted.
Aviva’s research emphasises the importance for those in their early adult lives to think about how they will fund their retirement. People may use a variety of strategies, including working to an older age, however individuals starting a pension savings plan as early as possible can also benefit from the compounding effect of interest from saving over a longer timeframe. For example, the report estimates that in Ireland the average 20 year-old could need to save an extra €4,400 a year but a 50 year-old could have to save more than double that at €9,700 a year to reach the same level of income in retirement. Where eligible some of the additional savings may come from employer contributions or tax relief – to recognise an individual’s own circumstances Aviva’s report encourages people to “Find their gap” by working out what their own pension savings gap might be, take action and #savesmarter.
Recommendations to address the European pension savings gap
Aviva calls on European policymakers to work in partnership with the private sector to establish a stable framework that encourages a savings culture, provides a minimum income for all and builds a more secure platform for individuals to plan for their retirement through:
Pensions systems that offer stability:
- Pension reforms that are evidence-based with political consensus
- Tax incentives that are durable and understandable
Increased access to pensions:
- introduce automatic enrolment with an employer contribution
- share learnings of current auto-enrolment programmes and build on scope, adequacy and engagement
Clear and simple communication and information:
- provide citizens with a consolidated view of their pension savings and an estimate of their retirement income
- build on technological progress to explore digital solutions, such as pension calculators and dashboard, to contribute to citizens’ understanding of their saving needs
Building individuals’ capability to take decisions by:
- Introducing financial education into the national curriculum
- Developing ‘rules of thumb’ that act as common standards with industry and partners to give individuals a sense of how much they need to save and the best way to go about this.
The full Aviva Mind the Gap report is available on www.aviva.com/europe-pensions-gap/.
Enquiries:
Media
Yasmin Saleh +44 (0) 207 662 8710
Public Policy
Victoria Roberts +44 (0) 207 662 3954
Notes to editors:
- Aviva has worked with Deloitte to ensure this research uses recent, established sources and a robust methodology to estimate the pension savings gap. Deloitte’s model necessarily makes a number of assumptions and in some cases simplifications but still aims to reach a fair and reasonable comparison for discussion.
- The methodology employed to quantify the pensions gap is based on bottom up analysis of Germany, Spain, France, Ireland, Italy, Lithuania, Poland, Turkey and the UK.
- The report focuses on pensions as they are designed to enable people to save for retirement over the long term.
- The report does not take account of other assets such as housing, cash deposits or other investments. Individuals may use these assets instead of, or on top of, pensions to provide an adequate retirement income.
- Further information on methodology used can be found on www.aviva.com/europe-pensions-gap.
About Aviva
- Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers, across 16 markets worldwide.
- In the UK we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia and Canada. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index.
- Aviva’s asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages £319 billion in assets.
- Aviva helps people save for the future and manage the risks of everyday life; we paid out £30.7 billion in benefits and claims in 2015.
- By serving our customers well, we are building a business which is strong and sustainable, which our people are proud to work for, and which makes a positive contribution to society.
- The Aviva media centre at http://www.aviva.com/media/ includes company information, images, and a news release archive.
- For an introduction to what we do and how we do it, please click here http://www.aviva.com/about-us/aviva/
- For broadcast-standard video, please visit http://www.aviva.com/media/b-roll-library/
- Follow us on twitter: www.twitter.com/avivaplc/
- Follow us on LinkedIn: www.linkedin.com/company/aviva-plc
- For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva
- We have a Globelynx system for broadcast interviews. Please contact the Press Officer noted above if you would like to make a booking.
[i] Source for GDP: Estimated 2016 GDP GDP in current prices, World Economic Outlook Database, IMF, October 2015.
[ii] This research assumes a 70% replacement rate for the ‘average’ individual as recommended by the Organisation of Economic Cooperation and Development (OECD). “It is reasonable to consider the 70% rate as the adequate retirement income benchmark for the average individual that will allow the individual to enjoy a standard of living in retirement that is similar to the standard he or she enjoyed prior to retirement.” Private Pensions Outlook, OECD, 2008.
[iii] The 2015 Ageing Report: Underlying Assumptions and Projection Methodologies (European Commission, 2015).
SOURCE: Aviva plc
- Digi Communications N.V. announced that its Spanish subsidiary, Digi Spain Telecom S.L.U., has completed the first stage of selling a Fibre-to-the-Home (FTTH) network in 12 Spanish provinces
- Natural Cotton Color lancia la collezione "Calunga" a Milano
- Astor Asset Management 3 Ltd: Salinas Pliego Incumple Préstamo de $110 Millones USD y Viola Regulaciones Mexicanas
- Astor Asset Management 3 Ltd: Salinas Pliego Verstößt gegen Darlehensvertrag über 110 Mio. USD und Mexikanische Wertpapiergesetze
- ChargeEuropa zamyka rundę finansowania, której przewodził fundusz Shift4Good tym samym dokonując historycznej francuskiej inwestycji w polski sektor elektromobilności
- Strengthening EU Protections: Robert Szustkowski calls for safeguarding EU citizens’ rights to dignity
- Digi Communications NV announces the release of H1 2024 Financial Results
- Digi Communications N.V. announces that conditional stock options were granted to a director of the Company’s Romanian Subsidiary
- Digi Communications N.V. announces Investors Call for the presentation of the H1 2024 Financial Results
- Digi Communications N.V. announces the conclusion of a share purchase agreement by its subsidiary in Portugal
- Digi Communications N.V. Announces Rating Assigned by Fitch Ratings to Digi Communications N.V.
- Digi Communications N.V. announces significant agreements concluded by the Company’s subsidiaries in Spain
- SGW Global Appoints Telcomdis as the Official European Distributor for Motorola Nursery and Motorola Sound Products
- Digi Communications N.V. announces the availability of the instruction regarding the payment of share dividend for the 2023 financial year
- Digi Communications N.V. announces the exercise of conditional share options by the executive directors of the Company, for the year 2023, as approved by the Company’s Ordinary General Shareholders’ Meetings from 18th May 2021 and 28th December 2022
- Digi Communications N.V. announces the granting of conditional stock options to Executive Directors of the Company based on the general shareholders’ meeting approval from 25 June 2024
- Digi Communications N.V. announces the OGMS resolutions and the availability of the approved 2023 Annual Report
- Czech Composer Tatiana Mikova Presents Her String Quartet ‘In Modo Lidico’ at Carnegie Hall
- SWIFTT: A Copernicus-based forest management tool to map, mitigate, and prevent the main threats to EU forests
- WickedBet Unveils Exciting Euro 2024 Promotion with Boosted Odds
- Museum of Unrest: a new space for activism, art and design
- Digi Communications N.V. announces the conclusion of a Senior Facility Agreement by companies within Digi Group
- Digi Communications N.V. announces the agreements concluded by Digi Romania (formerly named RCS & RDS S.A.), the Romanian subsidiary of the Company
- Green Light for Henri Hotel, Restaurants and Shops in the “Alter Fischereihafen” (Old Fishing Port) in Cuxhaven, opening Summer 2026
- Digi Communications N.V. reports consolidated revenues and other income of EUR 447 million, adjusted EBITDA (excluding IFRS 16) of EUR 140 million for Q1 2024
- Digi Communications announces the conclusion of Facilities Agreements by companies from Digi Group
- Digi Communications N.V. Announces the convocation of the Company’s general shareholders meeting for 25 June 2024 for the approval of, among others, the 2023 Annual Report
- Digi Communications NV announces Investors Call for the presentation of the Q1 2024 Financial Results
- Digi Communications intends to propose to shareholders the distribution of dividends for the fiscal year 2023 at the upcoming General Meeting of Shareholders, which shall take place in June 2024
- Digi Communications N.V. announces the availability of the Romanian version of the 2023 Annual Report
- Digi Communications N.V. announces the availability of the 2023 Annual Report
- International Airlines Group adopts Airline Economics by Skailark ↗️
- BevZero Spain Enhances Sustainability Efforts with Installation of Solar Panels at Production Facility
- Digi Communications N.V. announces share transaction made by an Executive Director of the Company with class B shares
- BevZero South Africa Achieves FSSC 22000 Food Safety Certification
- Digi Communications N.V.: Digi Spain Enters Agreement to Sell FTTH Network to International Investors for Up to EUR 750 Million
- Patients as Partners® Europe Announces the Launch of 8th Annual Meeting with 2024 Keynotes and Topics
- driveMybox continues its international expansion: Hungary as a new strategic location
- Monesave introduces Socialised budgeting: Meet the app quietly revolutionising how users budget
- Digi Communications NV announces the release of the 2023 Preliminary Financial Results
- Digi Communications NV announces Investors Call for the presentation of the 2023 Preliminary Financial Results
- Lensa, един от най-ценените търговци на оптика в Румъния, пристига в България. Първият шоурум е открит в София
- Criando o futuro: desenvolvimento da AENO no mercado de consumo em Portugal
- Digi Communications N.V. Announces the release of the Financial Calendar for 2024
- Customer Data Platform Industry Attracts New Participants: CDP Institute Report
- eCarsTrade annonce Dirk Van Roost au poste de Directeur Administratif et Financier: une décision stratégique pour la croissance à venir
- BevZero Announces Strategic Partnership with TOMSA Desil to Distribute equipment for sustainability in the wine industry, as well as the development of Next-Gen Dealcoholization technology
- Digi Communications N.V. announces share transaction made by a Non-Executive Director of the Company with class B shares
- Digi Spain Telecom, the subsidiary of Digi Communications NV in Spain, has concluded a spectrum transfer agreement for the purchase of spectrum licenses
- Эксперт по торговле акциями Сергей Левин запускает онлайн-мастер-класс по торговле сырьевыми товарами и хеджированию
- Digi Communications N.V. announces the conclusion by Company’s Portuguese subsidiary of a framework agreement for spectrum usage rights
- North Texas Couple Completes Dream Purchase of Ouray’s Iconic Beaumont Hotel
- Предприниматель и филантроп Михаил Пелег подчеркнул важность саммита ООН по Целям устойчивого развития 2023 года в Нью-Йорке
- Digi Communications NV announces the release of the Q3 2023 Financial Results
- IQ Biozoom Innovates Non-Invasive Self-Testing, Empowering People to Self-Monitor with Laboratory Precision at Home
- BevZero Introduces Energy Saving Tank Insulation System to Europe under name “BevClad”
- Motorvision Group reduces localization costs using AI dubbing thanks to partnering with Dubformer
- Digi Communications NV Announces Investors Call for the Q3 2023 Financial Results
- Jifiti Granted Electronic Money Institution (EMI) License in Europe
- Предприниматель Михаил Пелег выступил в защиту образования и грамотности на мероприятии ЮНЕСКО, посвящённом Международному дню грамотности
- VRG Components Welcomes New Austrian Independent Agent
- Digi Communications N.V. announces that Digi Spain Telecom S.L.U., its subsidiary in Spain, and abrdn plc have completed the first investment within the transaction having as subject matter the financing of the roll out of a Fibre-to-the-Home (“FTTH”) network in Andalusia, Spain
- Продюсер Михаил Пелег, как сообщается, работает над новым сериалом с участием крупной голливудской актрисы
- Double digit growth in global hospitality industry for Q4 2023
- ITC Deploys Traffic Management Solution in Peachtree Corners, Launches into United States Market
- Cyviz onthult nieuwe TEMPEST dynamische controlekamer in Benelux, Nederland
- EU-Funded CommuniCity Launches its Second Open Call
- Astrologia pode dar pistas sobre a separação de Sophie Turner e Joe Jonas
- La astrología puede señalar las razones de la separación de Sophie Turner y Joe Jonas
- Empowering Europe against infectious diseases: innovative framework to tackle climate-driven health risks
- Montachem International Enters Compostable Materials Market with Seaweed Resins Company Loliware
- Digi Communications N.V. announces that its Belgian affiliated companies are moving ahead with their operations
- Digi Communications N.V. announces the exercise of conditional share options by an executive director of the Company, for the year 2022, as approved by the Company’s Ordinary General Shareholders’ Meeting from 18 May 2021
- Digi Communications N.V. announces the availability of the instruction regarding the payment of share dividend for the 2022 financial year
- Digi Communications N.V. announces the availability of the 2022 Annual Report
- Digi Communications N.V. announces the general shareholders’ meeting resolutions from 18 August 2023 approving amongst others, the 2022 Annual Accounts
- Русские эмигранты усиливают призывы «Я хочу, чтобы вы жили» через искусство
- BevZero Introduces State-of-the-Art Mobile Flash Pasteurization Unit to Enhance Non-Alcoholic Beverage Stability at South Africa Facility
- Russian Emigrés Amplify Pleas of “I Want You to Live” through Art
- Digi Communications NV announces the release of H1 2023 Financial Results
- Digi Communications NV Announces Investors Call for the H1 2023 Financial Results
- Digi Communications N.V. announces the convocation of the Company’s general shareholders meeting for 18 August 2023 for the approval of, among others, the 2022 Annual Report
- “Art Is Our Weapon”: Artists in Exile Deploy Their Talents in Support of Peace, Justice for Ukraine
- Digi Communications N.V. announces the availability of the 2022 Annual Financial Report
- “AmsEindShuttle” nuevo servicio de transporte que conecta el aeropuerto de Eindhoven y Ámsterdam
- Un nuovo servizio navetta “AmsEindShuttle” collega l’aeroporto di Eindhoven ad Amsterdam
- Digi Communications N.V. announces the conclusion of an amendment agreement to the Facility Agreement dated 26 July 2021, by the Company’s Spanish subsidiary
- Digi Communications N.V. announces an amendment of the Company’s 2023 financial calendar
- iGulu F1: Brewing Evolution Unleashed
- Почему интерактивная «Карта мира» собрала ключевые антивоенные сообщества россиян по всему миру и становится для них важнейшим инструментом
- Hajj Minister meets EU ambassadors to Saudi Arabia
- Online Organizing Platform “Map of Peace” Emerges as Key Tool for Diaspora Activists
- Digi Communications N.V. announces that conditional stock options were granted to executive directors of the Company based on the general shareholders’ meeting approval from 18 May 2021
- Digi Communications N.V. announces the release of the Q1 2023 financial results
- AMBROSIA – A MULTIPLEXED PLASMO-PHOTONIC BIOSENSING PLATFORM FOR RAPID AND INTELLIGENT SEPSIS DIAGNOSIS AT THE POINT-OF-CARE
- Digi Communications NV announces Investors Call for the Q1 2023 Financial Results presentation
- Digi Communications N.V. announces the amendment of the Company’s 2023 financial calendar
- Digi Communications N.V. announces the conclusion of two Facilities Agreements by the Company’s Romanian subsidiary
- Digi Communications N.V. announces the conclusion of a Senior Facility Agreement by the Company’s Romanian subsidiary
- Patients as Partners Europe Returns to London and Announces Agenda Highlights
- GRETE PROJECT RESULTS PRESENTED TO TEXTILE INDUSTRY STAKEHOLDERS AT INTERNATIONAL CELLULOSE FIBRES CONFERENCE
- Digi Communications N.V. announces Digi Spain Telecom S.L.U., its subsidiary in Spain, entered into an investment agreement with abrdn to finance the roll out of a Fibre-to-the-Home (FTTH) network in Andalusia, Spain
- XSpline SPA / University of Linz (Austria): the first patient has been enrolled in the international multicenter clinical study for the Cardiac Resynchronization Therapy DeliveRy guided by non-Invasive electrical and VEnous anatomy assessment (CRT-DRIVE)
- Franklin Junction Expands Host Kitchen® Network To Europe with Digital Food Hall Pioneer Casper
- Unihertz a dévoilé un nouveau smartphone distinctif, Luna, au MWC 2023 de Barcelone
- Unihertz Brachte ein Neues, Markantes Smartphone, Luna, auf dem MWC 2023 in Barcelona
- Editor's pick archive....