pt.euronews.com
European Pension Income Disparities Highlight Social Security System Variations
In 28 of 29 OECD-analyzed European countries in 2022, older people's average disposable income lagged behind the overall population; income sources vary widely, with public pensions dominating in some, while work and private pensions are more significant in others.
- What are the primary income sources for older people in Europe, and how do these sources vary across different countries?
- In 2022, the average disposable income of older people was lower than the total population in 28 European countries, according to the OECD. Luxembourg was the only exception among the 29 countries analyzed. This income disparity highlights financial difficulties faced by pensioners, leading many over 65 to continue working.
- What are the implications of the varying income sources for older people across Europe, and what policy challenges do these disparities present for policymakers?
- The significant variation in income sources for older people across Europe reflects diverse social security systems. Western European countries heavily rely on public pensions, while Nordic countries show more diversified income sources, including robust private pension schemes. Eastern and Southern European countries exhibit higher percentages of work-related income, and private professional pension schemes remain underdeveloped in many Eastern and Southern European nations. This necessitates policy adjustments to address aging populations and maintain economically sustainable deficit levels.
- How do the proportions of public transfers, work-related income, and capital income in older people's income vary across Western, Nordic, and Eastern/Southern European countries?
- Public payments, primarily pensions and state benefits, constitute two-thirds (66%) of income for people aged 65 and over in Europe. Work is the second largest source (21%), followed by capital income (7%) and private professional pensions (6%). The proportion of public payments varies significantly across countries, ranging from 41% in Switzerland to 86% in Belgium.
Cognitive Concepts
Framing Bias
The framing is largely neutral and objective, presenting data from the OECD without overt bias. The article focuses on presenting the data rather than interpreting it with a specific viewpoint. While the conclusion summarizes key findings, it does so without imposing a specific value judgment.
Bias by Omission
The analysis focuses primarily on income sources for the elderly population in Europe, but omits discussion of other crucial aspects of elder well-being such as healthcare access, social support networks, and overall quality of life. While the data presented is comprehensive regarding income, a more holistic view of elderly well-being would enhance the analysis. The lack of information on social support systems across different European countries is a significant omission, as it directly impacts the financial security and overall well-being of elderly individuals. Further, the piece only addresses economic factors, not including social factors, which contribute to the overall quality of life for older adults.
Sustainable Development Goals
The article highlights that in 28 out of 29 European countries, the average disposable income of older people is lower than that of the total population. This indicates a significant portion of the elderly population faces financial hardship, directly impacting their ability to meet basic needs and escape poverty. The variation in income sources across countries further underscores the uneven distribution of resources and the persistent challenge of poverty among the elderly.