Press Release – PensionsEurope publishes its report ”Road to DC: Understanding the Shift”



PensionsEurope releases the report ‘’Road TO DC: Understanding the Shift’’

Brussels, 25 April 2024. Today, PensionsEurope, the leading voice for pensions, is releasing its report “Road to DC: Understanding the Shift’’.

Prepared by the PensionsEurope Future of Pensions Standing Committee, the report analyses the ongoing transition taking place in many European Member States from traditional Defined Benefit (DB) pension schemes to Defined Contribution (DC) or hybrid alternatives. With millions of Europeans relying on workplace and occupational DC pension schemes alongside state benefits, ‘’Road to DC: Understanding the Shift’’ examines this transition and proposes practical solutions for building robust and adequate retirement schemes in a more DC-oriented environment.

Delving into the drivers behind this evolution, the report looks at the overarching factors driving this change, including demographics, labour market changes, and evolving regulatory frameworks. Central to the discussion is also the difference between DB and DC schemes, particularly regarding risk allocation and retirement income guarantees. While DB schemes traditionally offer a fixed level of retirement income, DC and hybrid arrangements place greater but varied degrees of responsibility on individuals, depending on the specific system. Opportunities with DC schemes should not be overlooked, as they can provide enhanced coverage and greater flexibility.

Across Europe, there is no one-size-fits-all solution to DC pensions, given the differences in DC and hybrid arrangements from country to country. Regulatory frameworks must acknowledge this diversity and be adapted to suit national contexts. Still, several consistent themes are emerging in the shift to DC. Therefore, this research project promotes key principles and best practices in DC schemes, ranging from the scheme design to decumulation options, to ensure that DC and other hybrid schemes are resilient and provide adequate retirement incomes.

The Chairperson of PensionsEurope, Jerry Moriarty, said that this report was an important step in highlighting the variety of DC provisions that exists across Europe. While many of the challenges are similar in trying to ensure people have adequate and sustainable pensions, the means of achieving this vary. As there will be more emphasis on DC in the future, it is crucial that we all understand the possibilities that are available.

The full report is available here.


For media enquiries

Please contact Gabrielle Kolm, Policy and Communications Officer at PensionsEurope

Press Release – PensionsEurope publishes its report ”Road to DC: Understanding the Shift”
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