UK pensions systems 'sixth in EU'

The study looked at pensions before the EU expanded east

A study of pensions in the European Union has ranked the UK in sixth place.

The study looked at the 15 states in the EU before its latest expansion and ranked them on the size and sustainability of payments.

Portugal was top, thanks to a growing younger population, while Belgium came bottom - with little immigration to boost the number of young workers.

The study, from Aon Consulting, ranked Britain sixth, thanks to relatively generous company pension schemes.

BEST EU PENSIONS 1. Portugal 2. Ireland 3. The Netherlands 4. Sweden 5. Denmark 6. UK Source: Aon Consulting

France was placed 11th and Germany 13th.

The report said both suffered from unaffordable state pensions and a population that retired early.

Reform

The Pensions Commission will next week call for a more generous state pension but a rise in the claimant age to 67, the Financial Times reported earlier this month.

The commission has been tasked with finding a blueprint for pension reform and will publish a report on 30 November.

WORST EU PENSIONS 15. Belgium 14. Italy 13. Germany 12. Greece 11. France Source: Aon Consulting

It will propose a state pension rise from the current £80 a week to nearer the £109 a week paid out through the means-tested minimum income guarantee, the FT said.

This would be paid for by increasing the age at which people can claim from 65 to 67.

The commission will also recommend the creation of a national savings plan, in which people would automatically enrol.

The commission refused to comment on the Financial Times claims ahead of its report.