Europe-wide private pension plan is set to hit the market – but it must protect consumers, says Insurance Europe
The commission began consultations last year on its Pan-European Personal Pension Product (PEPP), which is intended to act as an additional income alongside public or workplace pensions.
But industry trade body Insurance Europe has noted today that, unless done properly, the move to encourage more people to take out private pensions could end badly.
“Insurance Europe welcomes the project of a Pan-European Personal Pension Product as a way to increase both the share of the population with private pensions and the allocation of funds to long-term investments,” it said in a report.
However, it added that the product needed to be “truly long-term” to be suitable as a source of retirement income.
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“Consumers should be incentivised to save for a long period, ideally until retirement, for instance through minimum investment periods,” it said.
Insurance Europe was also concerned about the security afforded to pensioners – both in terms of outliving their savings, and with respect to the security of their capital in the pension product.
Full Content: City A.M.
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