European pension systems, while built on different national models, are facing broadly similar structural challenges, according to PensionsEurope, Trend’s correspondent reports from the event.

Speaking at the 11th Azerbaijan International Insurance Forum in Baku, Matti Leppäla, Secretary General and CEO of PensionsEurope, said that although each European country has its own pension framework, many of the underlying problems are shared.

He noted that countries such as France, Italy, and Spain rely primarily on state-financed pay-as-you-go pension systems, while several other European states have long implemented funded pension schemes. Voluntary individual pension savings are also playing an increasingly important role across both national systems and EU-level policy discussions.

Leppäla said pension reform debates have gained urgency amid population aging, labor market shifts, and the rise of informal employment.

“In Europe, the number of self-employed workers, platform-based workers, and gig economy participants is increasing. Many of them are excluded from pension systems that have traditionally covered standard employees,” he said.

He also pointed to growing fiscal pressures on governments and a decline in public trust in state institutions compared with earlier periods.

“The key issue is not only how pensions will be paid tomorrow, but how trust in pension systems can be maintained over decades,” he said.

Leppäla outlined the diversity of pension models across Europe, noting that countries such as Switzerland, the Netherlands, Denmark, and Sweden rely significantly on funded occupational pension schemes as a second pillar alongside public social security systems.

He said Scandinavian countries in particular have developed a strong three-pillar model combining state pensions, occupational schemes, and voluntary private savings.

“These countries have successfully combined state and funded elements. In Sweden especially, individual pension savings play a significant role in the overall system,” Leppäla added.

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