Insurance Europe has responded to a European Insurance and Occupational Pensions Authority (EIOPA) consultation on the creation of a standardised pan-European personal pension product (PEPP).
In its response, Insurance Europe acknowledged the importance of examining possible ways of encouraging and supporting citizens to save for their retirement. Consequently, it welcomed that the proposed PEPP has been clearly identified as a personal retirement savings product, with an inherent long-term nature, aiming to deliver a retirement income.
The retirement objective can only be achieved provided the PEPP includes key long-term savings features, such as minimum investment periods. Should that be the case, the introduction of PEPPs will impact the allocation of funds towards long-term illiquid investments.
Insurance Europe acknowledged that such an initiative faces major challenges, particularly in light of close links to areas of national competence.
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