PensionsEurope answer to the EC consultation on a potential EU personal pension framework

PensionsEurope welcomes the European Commission’s works on an EU initiative in the field of personal pensions as a way to increase the overall pension savings and also as one of the building blocks of the Capital Market Union.

PensionsEurope promotes good pensions for the people in Europe in different shapes and forms. Most of the retirement income is and will continue to be provided by social security pensions and workplace pensions but voluntary personal pensions are particularly needed and useful for those who don’t have access to workplace pensions or where personal pensions offered are not reliable or attractive.

PensionsEurope believes that a standardised pan-European personal pension product regulated by a second regime - with a defined set of flexible elements - could contribute to the policy objectives of ensuring of high minimum standard of consumer protection. It appears as a much more feasible way and would promise superior outcomes than harmonizing regimes.

The impact of any EU initiative on personal pensions is likely to depend on the maturity of the markets: It would be particularly useful serving as a model for EU countries currently building up their complementary pension savings system and could also help enhancing the quality of products in more developed markets.

PensionsEurope believes that a supportive tax treatment is essential for the attractiveness of personal pension products compared to other saving products available at national level and that a Personal Pension initiative must respect the exclusive competence of the Member States in the field of taxation and of statutory public pensions. You can find our answer to the consultation here.