EU institutions agreed new rules that will make it easier for people to put money aside for their retirement.
EU ambassadors today endorsed the agreement reached between the presidency and the European Parliament on 13 December on the proposed ‘pan-European pension product’ (PEPP), a new class of personal pension scheme.
The draft regulation is aimed at providing greater choice for people who wish to save for their retirement, and at the same time boosting the market for personal pensions. According to the Commission, only 27% of Europeans between 25 and 59 years of age have subscribed to a pension product.
“Population ageing in Europe creates new challenges. One of them is how to make sure that people put enough money aside to live well after they retire. Pan-European pension products will create a new opportunity to put aside long-term savings using capital markets and thus relieving the pressure on public funding. PEPPs will also have the huge advantage of pooling all savings, wherever in Europe they have been made, in one single personal pension plan.”
Eugen Teodorovici, minister for finance of Romania
Under the new rules, PEPPs will have the same standard features wherever they are sold. They will be offered by a broad range of providers, principally insurance companies, banks, occupational pension funds, investment firms and asset managers.