• European Institutions for Occupational Retirement Provision (IORPs) providing defined benefits and hybrid pension schemes have, in aggregate, insufficient assets to cover their liabilities
• Sponsors of over a quarter of IORPs might face challenges meeting their obligations
• Vulnerabilities could spill-over to the real economy either through the adverse impact on sponsors and/or on beneficiaries through benefit reductions
• Recovery mechanisms mitigate the short-term effects on financial stability, but in the longer-term put the burden of restoring the sustainability of pension promises disproportionately on younger generations

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