Of the respondents to the consultation, 30% were in favour of maintaining the current system, 25% wanted to see it evolve and 20% thought it should be transformed. Photo: Shutterstock

Of the respondents to the consultation, 30% were in favour of maintaining the current system, 25% wanted to see it evolve and 20% thought it should be transformed. Photo: Shutterstock

As part of the debate launched several months ago on the future of the pensions system, a consultation was launched to gather ideas, opinions and proposals from civil society and other stakeholders. Some 2,000 people responded, with the majority advocating moderate reforms to help the system evolve rather than radically transforming it.

More than 2,000 people took part in the consultation on the future of the pension system, giving their views and expressing their concerns. This provided the basis for a discussion and the identification of priorities on nine main themes. These themes “highlight clear priorities for the future,” the government said in a press release issued on Friday 10 January. “The public’s participation demonstrates the extent to which the issue of old-age provision is essential for our citizens. The diversity of the contributions received represents a valuable element in continuing to shape a sustainable pension system,” said the minister for health and social security, (CSV).

Three main themes emerged from the consultation, according to the government. The first was fairness, with the aim of harmonising the different systems. “Many contributions denounced perceived inequalities and called for a fairer distribution of financial resources,” states the consultation’s conclusion. Then there is the question of sustainability, defined as the second major area for reflection. “Many participants are calling for alternative funding models that include sustainable investment and changes to contribution structures. They stress the need to take greater account of demographic trends and the needs of future generations to guarantee the long-term stability of the system,” the government said.

Lastly, adaptability was another argument that came out strongly in the consultation, highlighting a desire for greater flexibility with regard to the retirement age and the possibility of individualised solutions and/or solutions specific to certain professions.

Other points raised

In addition to the three main themes highlighted and detailed above, other, more concrete issues also emerged from the consultation. These relate in particular to pension levels and ceilings, and include “requests for an increase in the minimum pension (often proposed at between €2,500 and €3,000 per month), for a ceiling on high pensions (often proposed at between €5,000 and €8,000 per month) and for indexation to be maintained. The aim is to promote social equity and ensure financial stability.”

Other models for financing the pension system have also been proposed, such as supplementing traditional financing with taxes or levies on wealth, or more active investment strategies in different asset classes. Other suggestions also emerged, such as removing the contribution ceiling, moderate increases in contribution rates and broadening the contribution base beyond earned income.

For some respondents to the consultation, tax incentives and more flexible investment options for retirement provision could be interesting avenues to explore.

The next stages

This consultation should serve as a basis for the next stage of this vast national project: the dialogue that will take place this year, starting in February. The minister then expects that by the summer a solid foundation will have been laid for possible reform measures.

This article was originally published in .

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