Pension gap

What is a pension gap? Find the definition in the following section.

In most cases, the pension received when someone retires is lower than the (net) income they earned prior to retirement. A pension gap is said to exist when the benefits from the state pension and employee benefits insurance are insufficient to maintain living standards in old age. One of the options for closing this gap is by making voluntary savings into the third pillar.

Further terms on the topic of pension provision in the glossary.