Large variations exist in the approach to pensions in EU member states. This
Policy Department A study aims at providing the EMPL Committee with
information about the risks and replacement rates of the different pension
schemes. Vulnerable groups are less likely to contribute to individual plans or
'third-pillar' schemes, which complicates a shift in replacement rates from Pillars
1 (aimed at avoiding old age poverty) and 2 (occupational schemes) to Pillar 3.
Pillars 1 and 2 should ensure pension adequacy, leaving Pillar 3 as a tool for
individuals to enhance their replacement rates.