EU Launches a new pan-European personal pesnions label to help consumers save for retirement

EU Commission launches Pensions Plan label to help consumers save for retirement

30/06/2017

On June 29th, the EU launched a new pan-European personal pensions label to help consumers save for retirement.

Currently, the European market for personal pensions is fragmented and uneven. The offers are concentrated in a few Member States, while in some others they are nearly non-existent. This variation in supply is linked to a patchwork of rules at EU and national levels, which impede development of a large and competitive EU-level market for personal pensions. The PEPP will allow consumers to voluntarily complement their savings for retirement, while benefitting from solid consumer protection: PEPP savers will have more choice from a wide range of PEPP providers and benefit from greater competition. - Consumers will benefit from strong information requirements and distribution rules, also online. Providers will need to be authorised by the European Insurance and Occupational Pensions Authority (EIOPA) to provide the PEPP. - PEPP will grant savers a high level of consumer protection under a simple default investment option. - Savers will have the right to switch providers – both domestically and cross-border - at a capped cost every five years. - The PEPP will be portable between Member States, i.e. PEPP savers will be able to continue contributing to their PEPP when moving to another Member State.