Insurers Warn of European Pension Crisis

Europe's big life insurers are warning that a growing "pension gap" will lead to a deterioration in the quality of life for many Europeans, a trend that opens up possibilities for private market pension providers.
According to a new study by U.K. insurance group Aviva plc, Europe is now facing a 1.9 trillion euro pension gap. That figure is equivalent to 19% of the European Union's 2010 gross domestic product, and "indicates that unless individuals increase their savings for retirement the majority will face a seriously reduced standard of living once they retire," Aviva said.

At the country level, the United Kingdom, France, Germany and Spain have the biggest pension gaps, at 379 billion euros, 243.5 billion euros, 468.8 billion euros and 170.5 billion euros, respectively, according to Aviva.

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