According to the European Commission, lower birth rates of Europe and the ageing population have made it imperative for the EU members to overhaul the pension systems. A report from the Commission suggests automatic adjustment for the age of retirement age because the life expectancy has increased in Europe.

Some of the states of EU have implemented this system. The EU Employment Commissioner, Laszlo Andor has said that the current situation over the pension is simply unsustainable.

Most of the European countries including Greece, France, Spain and the UK have decided to rise the retirement age. This move has brought in as the governments need to slash the tough budget deficit.

However, people are not at all happy with this decision.

Thousands of people have protested in the streets against this decision of the authorities. The commission has said that in the EU, one among four persons is over 65 years now. It has also said that the ratio may become two for each person by 2060 if the pension plans are not overhauled now.