|
|
Following EIOPA's advice on the regulatory outline to create an attractive PEPP in the form of a 2nd regime, the European Commission's proposal promotes a PEPP with the potential to achieve the required replacement rates for the benefit of the future pensioners in the European Union.
The PEPP, a safe, transparent and cost-effective long-term retirement savings product, will encourage the much needed additional pension savings. Generally in Europe, but particularly in the young pension market, there is a strong need to save more for proper future retirement income. The PEPP will bring the flexibility to cater for a European labour market that is characterised by increasingly unconventional careers and heightened mobility of workers. In addition, the PEPP will be a powerful tool to enable important long,term investments.
Gabriel Bernardino, Chairman of EIOPA, said: “The legislative proposal of the European Commission is a huge and concrete step forward in filling the pension gap for the benefit of European citizens. The PEPP will provide the pension savers with a trustworthy product to reach an adequate pension. Furthermore, the PEPP will unlock the full potential of the pension market reaching better outcomes for consumers through fair competition. Going forward, EIOPA is keen to play a key role in achieving high quality and consistent supervision to ensure the trust and confidence of European citizens in the PEPP. ”