Pensions

The digital transformation is not just a prerequisite for a careful, reliable, and efficient transition to the new pension system; it is also essential for operating flexibly and cost-effectively in today’s rapidly changing society. Digital innovation enables pension providers to offer participants personalized insights and guidance in their choices. Without strong digital capabilities, pension funds and insurers cannot meet the obligations and expectations set by industry regulators and the government.

The pension sector throughout Europe is undergoing significant transformation. Major changes are driven by ongoing demographic shifts, increasing labor mobility, and a growing need for flexibility. Pension systems are being reformed: traditional collective guarantees are giving way to defined contribution schemes, placing the individual at the center and increasing personal responsibility for retirement planning.

Digital strength is crucial for the future viability of pension funds, administrators, and insurers

The transition to the new pension system is underway, shifting from fixed benefits to individual pension assets. The elimination of the average contribution system ensures fairer and more transparent pension accrual for both younger and older employees, while putting greater emphasis on freedom of choice and insights. Digitalization and innovation are already part of daily practice: participants expect real-time information, digital self-service, and personalized communication and decision guidance.

Moreover, there is a growing national and international focus on themes such as sustainability, inclusivity, and flexible pension accrual that is independent of contract type or career path. Pension funds, insurers, and other providers are already facing the challenge of adapting their data quality, IT systems, and services to meet these evolving demands.