Europe needs better pensions — not one-size-fits-all rules
The European Commission has presented a comprehensive pension package. Although the ambition is commendable, the EU’s effort must not undermine well-functioning national pension systems. The Confederation of Swedish Enterprise is pushing to ensure that Sweden’s collectively bargained occupational pension system is fundamentally safeguarded.
As part of the work on a European savings and investment union, the Commission presented its pension package in November 2025. Among other things, it aims to strengthen supplementary pensions— of which occupational pensions are a central part—and thereby contribute to both better pensions and increased capital formation in the EU.
Steps towards a standardised solution
The pension package does not contain any proposal to introduc mandatory occupational pensions at the EU level. Nor does the EU have competence in pension matters. However, it includes a recommendation that Member States introduce so-called auto-enrolment—automatic enrolment into supplementary pension savings, such as occupational pensions. This risks becoming a step towards a more standardised European solution where enrolement is the norm rather than the exception.
In addition to recommendations, the pension package contains legislative proposals, primarily in the form of a revision of the IORP Directive, which regulates occupational pension institutions. The aim is to strengthen the framework for occupational pensions, including through improved governance, risk management, and information disclosure.
At the same time, measures are proposed to increase transparency, such as national pension dashboards and systems for tracking individuals’ accrued pension rights. These elements also indirectly aim to increase participation in supplementary pensions.
A successful Swedish pension system
The Swedish occupational pension system is exceptionally successful by European standards. The system delivers high returns over time to pension savers, is a vital part of the Swedish model, and also contributes positively to the Swedish capital market.
For an increasing number of people, payments from occupational pensions exceed those from the public pension system. The system is created through collective agreements between autonomous social partners. The Confederation of Swedish Enterprise shares the EU’s goal of ensuring good pensions, but warns that the path to achieving this must not undermine well-functioning national systems.
A clear risk is that the package could interfere with national pension systems. In many countries, not least Sweden, ccupational pensions are closely linked to labour market models and collective agreements. The Swedish occupational pension systems are the result of negotiated agreements that include several different components.
May negatively affect the collectively bargained model
The EU’s recommendation risks limiting flexibility and, in the long run, negatively impacting the collectively bargained model. Increased regulatory requirements could make it less attractive to offer occupational pensions, which would in turn counteract one of the package’s main objectives— to increase the coverage of supplementary pensions.
Increased regulatory requirements also risk undermining the autonomy of the social partners on which Sweden’s collective bargaining system is built. Furthermore, pension systems are deeply rooted in national conditions, and a “one-size-fits-all” model risks being ineffective.
The Confederation of Swedish Enterprise is now actively working to increase knowledge and understanding of the Swedish collectively bargained occupational pension systems in order to ensure their continued existence.