On the adequacy of pensions in the EU

(focusing on Belgium)

Karel Van den Bosch

Herman Deleeck Centre for Social Policy
University of Antwerp

1
 Contents

1. What is adequacy?
2. Intergenerational equity
3. Fighting poverty among the 65+ in Belgium

2
 Adequacy

Two dimensions of adequacy:

1. Maintaining the standard of living
(replacement ratio)
2. Minimum income protection

Proposition:
Since the first duty of welfare states is to protect
the weakest, minimum income protection must
take priority.

3
 Intergenerational equity

Income poverty is higher among children then among

the elderly in several countries of the EU
Children (0-18) Elderly (65+)

0,6

0,5

0,4

0,3

0,2

0,1

0
4
FI SE DK UK IE NL BE LU DE AT FR ES PT IT GR CY SI CZ SK HU PL LT LV EE RO BG EU IS NO
 Intergenerational equity

Income poverty is far higher among the unemployed

then among the retired in almost all MS of the EU
Unemployed Retired

0,6

0,5

0,4

0,3

0,2

0,1

0
IT

CY

HU

RO

NO
FI

SI
NL

AT

PT

CZ

LT
UK
IE

IS
LU

FR

GR

EU
BG
PL
SE
DK

BE

DE

ES

SK

LV
EE
5
 Intergenerational equity

Material deprivation is higher among children then

among the elderly in most countries of the EU15
children (0-18) elderly (65+)
0,8

0,7

0,6

0,5

0,4

0,3

0,2

0,1

RO

NO
HU
CY
IT

BG
LU

FR

GR

EU
UK

IE

IS
AT

PT

CZ

LT
NL

6
FI

SI
SE

DK

BE

DE

ES

SK

LV

EE
PL
 Intergenerational equity

Material deprivation is very much higher among the

unemployed than among the retired in almost all
MS of the EU
unemployed retired

0,8

0,7

0,6

0,5

0,4

0,3

0,2

0,1

HU

RO

NO
CY
IT

BG
UK

IE

IS
LU

FR

GR

EU
AT

PT

CZ

LT
NL
FI

SI
SE

DK

BE

DE

ES

SK

LV

EE
PL
7
 Intergenerational equity

Evolution in minimum incomes in Belgium since 2000:

upward for
elderly, self-
employed

flat for
unemployed

8
 Fighting poverty

Three propositions
Minimum income protection for the elderly should
be adequate, but so should minimu benefits for
the non-working at active age
Poverty and deprivation among the elderly are often
due to specific costs:
- rent
- health care
Limiting these costs could be an efficient way to
fight poverty among the elderly
9