European Governments have run out of room to fix current pension systems

With aging populations, birth rate decline and increases in life expectancy, the demographic trend has been apparent for decades. But the levers to balance the system are all very delicate to handle, from pushing back retirement age to decreasing pensions to increasing contribution rates… 

European governments have pushed through so-called ‘parametric reforms’ to try to balance the system without changing its structure over the past 25 years. This has now reached it maximum and fundamental, structural reforms need to take place 

A recent study by the FECIF European Pensions Institute and CMI Strategies has looked at the implications of demographic tensions and pension reforms across 12 European countries, as seen by client-facing financial advisors