Skip to content. | Skip to navigation

Personal tools
Sections
You are here: Home Members European Consumers' Organisation Parliament gives green light to handy EU-wide pension product

Parliament gives green light to handy EU-wide pension product

05 April 2019
by BEUC -- last modified 05 April 2019

The EU Parliament has given its blessing to a deal reached between the EU institutions on the creation of a pension product that would be available in all EU countries and to all consumers, regardless of the country they live in or move to.


Advertisement

The pan-European Pension Product (PEPP) offers a simple and cost-effective option that will offer pension savers more choice when saving up for their retirement.

Monique Goyens, Director General of The European Consumer Organisation (BEUC), said:

"The pensions market is full of complex products where the returns are heavily eaten into by fees. The creation of this pan-European pension product will provide people up and down Europe with an option that is both interesting and simple.

"In an age where people are expected to start saving for retirement earlier and earlier, this could be a very useful addition to the market. It will hopefully nudge pension product providers to offer more cost-effective products that are in the consumer's interests."

The biggest advantage of the pan-European Pension Product is that it places a cap on the fees that providers can apply for the basic version of the pension product at 1%. Fees can have a significant impact on the final pension pot that a saver accumulates. In order to ensure that the product is truly cost-effective for consumers, BEUC believes that both the fees and all of the costs associated with the pension product should be capped.

BEUC acts as the umbrella group in Brussels for its members and its main task is to represent them at European level and defend the interests of all Europe's consumers. BEUC investigates EU decisions and developments likely to affect consumers, with a special focus on five areas identified as priorities by its members: Financial Services, Food, Digital Rights, Consumer Rights & Enforcement and Sustainability.

European Consumer Organisation (BEUC)