EU experts call for more transparent and cost-efficient pension plans.

As part of the European Pensions Week, experts from civil society and industry discussed with experts from the European Commission and the European supervisory authorities about the challenges and opportunities of ensuring sustainable and appropriate private pension schemes in Europe. The event, organised by BETTER FINANCE in cooperation with the CFA Institute and the Federation of European Securities Exchanges (FESE), focused on key topics such as financial security, environmental sustainability and social justice.

Focus on simplification and transparency

A key point of discussion was the demand for simpler, more transparent and cost-effective pension plans. According to the experts, many of the plans currently on offer are unnecessarily complex and often only offer low returns. A stronger focus on clearly structured and easy-to-understand solutions such as exchange-traded funds (ETFs) could significantly increase the attractiveness and effectiveness of such products. Transparency and reduced costs were cited as key factors in boosting consumer confidence and increasing the participation rate in private pension schemes.

Sustainable investments and social justice

The importance of sustainable investments was emphasised in the first panel "Golden Years on a Green Planet". According to the panellists, pension investments should not only generate financial returns, but also make a positive contribution to tackling climate change. At the same time, the need for balanced risk management was emphasised in order to balance out volatility and ensure long-term security.

The second panel was dedicated to social justice in old-age provision. They discussed how income inequalities - especially between men and women - can be overcome. The focus was on measures such as greater protection for care periods, the promotion of flexible pension plans and support for atypical employment relationships.

Target – a standardised framework

Overall, the experts were in agreement and praised the harmonised, EU-wide pension plan "Pan-European Pension Product" (PEPP). This is a standardised European pension plan that is supervised by national authorities and the European Insurance and Occupational Pensions Authority (EIOPA). The PEPP offers low-threshold and low-cost access to private pension scheme and is transferable throughout the EU. Continued focus on education and financial literacy was also emphasised as these are important steps towards a more resilient and fairer system.