Pensions and Health Equity

Today, with the adoption of the report ‘Towards adequate, sustainable and safe European pension systems’ by the European Parliament, EuroHealthNet highlights that adequate income for a healthy life, including through retirement by provision of pension support, is important to ward off the threat of poverty, ill health and social exclusion for older vulnerable people. Calling for the inclusion of the health equity dimension within European pension systems to strive towards social justice and economic efficiency, EuroHealthNet recommends specific approaches here.

Despite the positive impact of social, economic and medical progress on health outcomes, health inequities have however persisted and increased in and between states and regions. In a world where 151 million Europeans will be over 65 in 2060, adequate pension support will be an essential component in contributing to environments that are conducive to promoting healthy living conditions.

Currently in the EU, one out of five of all older people is at risk of poverty. EuroHealthNet highlights that health, poverty and social exclusion are strongly interrelated and moreover, this threat is further reinforced by the financial crisis and the impending budget cuts in some public expenditures. Older women, disabled and chronically ill people and people at the lower end of social gradient are particularly at risk.

Pensions systems must be universally proportionate to provide people with the means to live a dignified and healthy life. Pension benefits should consist of a minimum income for a healthy living (MIHL) and linked to indexation to match increases in the cost of living. In addition, the possibility for older people to fully integrate into the labour market should be promoted in ways that effectively address Europe’s objectives for growth and jobs. Solidarity within and between generations is also a key aspect of national social protection systems to reinforce social cohesion

Pension systems should reflect the average life expectancy gap of fifteen years between lower socio-economic groups who start their working life earlier and people from higher socio-economic groups who tend to be more educated and who start working at a later age. Finally, prevention, health promotion and education should be better integrated in all policies; equal opportunities and the protection of disabled and chronically ill people in labour markets should also be taken into account in respect of health equity. 

EuroHealthNet Director Clive Needle said “Much attention is focusing on the so-called “demographic time-bomb”, financial pillars of pension provision and how states can manage what is too often seen as a burden. However evidence on healthy ageing and social determinants of health shows that addressing inequities through life can help turn older people into a real asset for communities and economies. The EU has a real role to promote that as set out in its Treaty objectives of promoting wellbeing and cohesion for all its citizens from pregnancy to pensions.”

For further information, contact Stecy Yghemonos at s.yghemonos@eurohealthnet.eu