The Telegraph: the “golden era” of European pensioners has come to an end

Pension spending in Europe is being cut

The European Union is actively cutting pension spending, risking the loss of support among older voters, The Telegraph reports. The publication states that the “golden era” of European pensioners has come to an end: it is becoming increasingly difficult for countries to finance payments at their previous level, and population ageing will require new solutions for Europe's pension systems.

What is changing in individual countries

In the United Kingdom, Prime Minister Andy Burnham proposed changing the annual pension indexation from 2030 by excluding wage growth from it; according to the publication's estimate, pensioners could lose £1,600 a year over the next 20 years. In Romania, the authorities froze pensions for two years starting in 2025, despite double-digit inflation, under pressure from the EU demanding a reduction in the budget deficit. In France, the government wanted to limit the indexation of payments above €1,260 per month and raise the retirement age to 64, but the age increase was postponed due to protests. In Czechia, the additional indexation linked to wage growth was cut from one half to one third, while in Slovakia the retirement age was linked to life expectancy: by 2030 it will reach 64 and will continue to rise.

Context

Earlier, as Gazeta.Ru noted, EU countries demanded that the European Commission carry out a “general clean-up” of legislation. The measures cited in the publication concern different countries and are at different stages: some have already been adopted (the pension freeze in Romania, the change in indexation in Czechia), while others are merely proposals or postponed plans (the British reform from 2030, the French age increase).