As the EESC’s opinion points out, Pan-European Personal Pension products are important for a limited number of groups, such as mobile professionals who work in different EU member states, while statutory and work-based pensions should remain more relevant to EU member states’ policy efforts.
However, the EESC considers the creation of such products should meet a number of criteria:
- Taxation on Pan-European Personal Pensions should be fair and non-discriminatory relative to national products
- Consumer protection and risk mitigation should be strengthened, especially in terms of clarity on the guarantees that exist for savers who invest into those products.
- The market should be strongly monitored by a European authority (EIOPA) and national supervisors to achieve consistency across the Union
- The fees charged for contracting Pan-European Personal Pensions should be clear
The consumer association Better Finance has welcomed the proposal for a Pan-European Personal Pension product, highlighting that it has the potential to reduce costs for consumers. Better finance also identified key aspects for this aim to be achieved: the basic investment option should provide good value for money and be simple and standardised. Also, products should be regulated by strong investor protection rules; such as the disclosure of information that shows the long-term returns of a particular product in comparison with similar products.
While AGE welcomes the proposal and the overall objectives and design, we are currently assessing the proposal for Pan-European Personal Pension Products and will develop a more detailed position later on.
For more information, please contact Philippe Seidel, AGE Policy Officer: philippe.seidel@age-platform.eu
Useful links:
- AGE Platform Europe: Commission launches proposal for Pan-European Personal Pensions
- EESC opinion on the Pan-European Personal Pension product
- Better Finance: Better Finance Applauds EU Proposal for a Pan-European Personal Pension (PEPP) to Defuse the Ticking Pensions Time Bomb
- European Commission, Commission launches a new pan-European personal pensions label to help consumers save for retirement