The European Commission has adopted a package of measures to help citizens secure adequate income in retirement by improving access to better and more effective supplementary pensions.
The package forms part of the Commission’s Savings and Investments Union (SIU) Strategy which aims to create more opportunities for households to build their wealth through capital markets, while boosting EU economic growth and competitiveness.
The aim of the proposed measures is to strengthen both the demand for and the supply of supplementary pensions.
The package also includes measures to reform of the Pan-European Personal Pension Product (PEPP), which have been welcomed by Thomas Richter, CEO of the German funds association BVI.
He said: ’Removing the fee cap on PEPP eliminates a major hurdle. However, it is questionable whether EU Member States will be willing to provide the necessary tax incentives. Without these, the product will still not succeed. In Germany, the planned tax-advantaged retirement savings account will be the more attractive option for savers.’
The Commission also today published its plans to reform the Sustainable Finance Disclosure Regulation (SFDR), the EU’s transparency framework for financial products integrating environmental or social aims.
The changes are designed to address current shortcomings, making the rules simpler, more efficient, and better aligned with market realities. The revised rules will, the EU executive claims, be more retail-friendly and usable for companies. Among the changes are simplified disclosures and a simpler system for the categorisation of financial products.
