Module 2 : Pensions, Social Security and Thinking early about the future

Module 2 introduces the notion of social security, pensions and the mind setting of thinking early about the future. It will explain the importance and the necessity of social security contributions by any salaried person, even if the majority of people are not that keen to see their income being cut. The division of social security into different principles will be presented, providing a short explanation for each one.

Then, the focus will be given to pensions and the notion will be explained. The main conclusion of this unit is the fact that many people turn to private pensions because state pensions are not enough for pensioners to live comfortably in the future. This will highlight the importance of saving early for the future, even if retirement seems so far away.

Moving on to the next unit, the role of the EU will be analysed focusing on three of its initiatives. The motivation of the EU towards social security and pensions demonstrates their importance not only at a personal but also at the EU level as it is one of the Union’s priority. Moreover, the profile of all seven partner countries will be observed and their pension systems will be compared between them, concluding on their main similarities and differences.  Lastly, examples of second and third pillar pensions will be demonstrated, as an additional resource to interested learners.