EU pension’ planned for people who move between countries
A new “EU pension” will be introduced to aid people who move around the continent under proposals from the European commission.
The EU-branded product will allow workers hopping from country to country to save seamlessly into one pot.
To make the EU pensions more attractive to savers, Brussels will recommend national governments give the pan-European product the most favourable tax treatment they are able to provide.
It had been hoped that the tax treatment of pensions could be harmonised as part of the proposal, but that has not survived consultation with the member states.
Providers of the new EU pension will also need to live up to high levels of transparency over fees, as concern grows that savers are currently left in the dark about the charges being taken from their savings.
The European commission says it is hoped the EU pension will encourage workers, particularly those who exploit the EU’s freedom of movement, to save during their lifetimes. Only 27% of Europeans aged between 25 and 59 have enrolled themselves in a pension product.
Full Content: The Guardian
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