Three different types of pension schemes are commonly recognised: the first corresponds to public defined benefit schemes based on a ‘pay as you go’ system, generally financed out of contributions withheld from salaries; the second consists of private pension schemes made available in the framework of an employment contract; the third corresponds to individually subscribed savings plans and annuities contracts.

While all the member states have at least the first pillar, in order to combat poverty among older persons, the legal age for entitlement to benefits varies widely from one member state to the next. In Romania and Bulgaria, for example, women can retire at age 58, while in Denmark they cannot retire before age 67. Age is nonetheless not the only criterion for entitlement to pension benefits. The countries often also require a minimum period of insurance. In Belgium, Italy and Spain, the duration is 35 years to be eligible for a full pension.

In the UK, only 30 years of contributions are required to receive the basic state pension (€116 a week), while the insurance period in Romania is 27 years and eight months for women, and 32 years and eight months for men.

The European Commission recently set up a website that details the rules of the 27 social security systems in the European Union. Since 1 May, the date of entry into force of Regulation 987/2009, people who have worked in more than one member state during their career are entitled to add up the different insurance periods to make a single state pension. This is unfortunately not yet the case for supplemental pensions.

The different systems are presented at ec.europa.eu/employment_social/social_security_schemes/national_schemes_summaries/index_en.htm