OECD Warns of Significant Retirement Savings Gaps Across Europe
The Organisation for Economic Co-operation and Development (OECD) has issued a warning regarding substantial retirement savings gaps across Europe. According to its Pensions Outlook 2026, mandatory pension systems in 22 out of 30 European countries are projected to fall short of the OECD's target retirement income, which is set at 70% of gross pre-retirement pay. The OECD calculates a 'contribution gap,' representing the additional percentage of earnings workers would need to invest in voluntary pension plans to meet this target. Lithuania faces the widest shortfall at 20.7% of earnings, while Switzerland has the largest estimated monthly additional contribution, exceeding EUR1,000 for men earning average wages. Other countries with significant double-digit gaps include Ireland (19.4%), Poland (17.3%), and Germany (11.1%). Conversely, mandatory pensions in countries like Austria, Denmark, Greece, Italy, Luxembourg, the Netherlands, Portugal, and Spain are expected to meet the target for men on average wage...
