In Summary
Citizens recognize the need for social security reforms, but have far less confidence that reforms will actually be delivered. Our survey of more than 8,000 respondents across Austria, France, Germany, Italy, Poland, Spain, the UK and the US explores public attitudes towards social security reform, pension sustainability and retirement preparedness. Recognition of the need for reform is overwhelming, exceeding 80% in most countries. Yet confidence in governments' ability to implement the reforms needed to ensure long-term sustainability is much weaker. The latter ranges from just 36% in Italy and 42% in Germany to 63% in Poland and 66% in the US. Views diverge more sharply when it comes to how the adjustment burden should be shared. Taking greater personal responsibility through additional saving is the most widely accepted option, while higher taxes and social contributions receive little support. Importantly, while respondents differ on how adjustment should be achieved, only a minority rejects all proposed measures outright. The challenge for policymakers is therefore no longer convincing citizens that reform is needed, but demonstrating that reforms can be delivered and designing politically viable reform packages.
Older generations are not blocking reform. Recognition of the need for reform increases with age, but trust that governments will successfully implement the necessary reforms declines. While 61% of respondents aged 18 to 34 express confidence that the necessary reforms will be implemented, this falls to 54% among those aged 35 to 49 and to just 44% and 43% among respondents aged 50 to 64 and 65 to 79, respectively. The result is a striking paradox: the older cohorts are most convinced that reform is necessary, while younger respondents attach less urgency to the issue, suggesting that pensions suffer from a salience gap despite their long-term importance. Contrary to common stereotypes, respondents aged 50 to 64 are also among the most willing to accept measures such as working longer, postponing retirement or receiving lower public benefits.
Responsibility for retirement is increasingly shifting onto individuals, yet many lack the knowledge to prepare for it. Only half of respondents expect the public pension system to provide the majority of their retirement income. As occupational and private pension provisions gain importance, pension and financial literacy are becoming essential pillars of retirement adequacy and pension sustainability. Yet only one in six respondents shows a high level of financial literacy (18%), while one in four scores low (26%). The knowledge gaps have concrete implications: only one-third of respondents correctly identified how long they are likely to spend in retirement, and only half state that they have a clear picture of their expected financial situation in retirement. These findings suggest that the financial literacy gap is also a pension literacy gap.
More funded pension provision – as envisaged in Germany – would be a win-win for households and the wider economy. Stronger occupational and private pension pillars would improve retirement security through greater private wealth accumulation while simultaneously providing long-term capital to financial markets. This could support investment in innovation, infrastructure and the green transition. Asset-backed pension arrangements amount to more than 200% of GDP in Denmark, 145% in the US and 78% in the UK, compared with just 6% in Germany and 13% in France. If Austria, France, Germany, Italy, Poland and Spain had reached the UK's level of pension assets relative to GDP in 2025, an additional EUR8.8trn of long-term investment capital would have been available.