In a position paper published on Thursday 9 January, the European Federation of Investors and Financial Services Users, Better Finance, called on EU leaders to take decisive action to ensure that the ‘pan-European personal pension product’ (PEPP) reaches the European market to the benefit of savers.
According to the federation, in the face of Europe’s ageing population and growing demands on public pension systems, the PEPP, introduced in 2022 as a low-cost cross-border retirement savings solution, represents a “lifeline” for savers in the face of private alternatives. However, its deployment has stalled (see EUROPE 13534/22).
“The financial industry has failed to embrace PEPP, citing concerns over its fee cap and perceived lack of market appeal. Critics have questioned the product’s viability, with some providers hesitant to prioritise a low-cost offering over more profitable alternatives,” said Better Finance in a press release.
The Federation challenges industry scepticism by pointing to the success of low-cost pension schemes in the US, UK and Australia.
See the position paper: https://aeur.eu/f/f0o (Original version in French by Bernard Denuit)