Pensions

At the Social Europe conference in Berlin, Professor Ebbinghaus discussed the report of the EU High-Level Group on the “Future of Social Protection and the Welfare State in Europe” in respect to old age security, The best pension policy is to pursue social investment early over the life course and an inclusive employment strategy combined with social protection for all. The Report argues for a social investment approach that “starts strong” during early childhood and subsequently promotes equal opportunities in education. Such an inclusive approach needs then to continue throughout the working life and leading with an active ageing strategy into old age with adequate pensions, health and long-term care provision. In order to avoid old age poverty it is necessary to increase labour market integration broadly and include all in contributing to pensions, whether via public insurance or supplementary savings. Professor Ebbinghaus argues that the best pension policies need to start early with investing in education and inclusive labour market policies, the multiplier effects of such a social investment strategy, together with more inclusive employment and protection for all, will make pension systems more sustainable in financial terms but also socially more just. It will also increase the trust in intergenerational solidarity if we combine both social investment and inclusive protection.