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PEPP must be long-term product that supports citizens in saving for retirement

Insurance Europe has responded to a European Commission consultation on personal pensions, where it acknowledged the importance of examining ways of encouraging and supporting citizens inĀ savingĀ for their retirement. It also welcomed the Commission's interest in linking the future of pensions to its goal of strengthening and diversifying the financing of the EU economy through a Capital Markets Union.

Insurance Europe also noted that the respective roles of and interaction between statutory, occupational and personal pensions are unique to each member state and differ substantially across the EU. It stressed that the concept of an EU personal pension product may be an appropriate way to meet the Commission's objectives, provided that it is a true long-term product delivering a retirement income.

Insurance Europe emphasised that while this initiative may increase the volume of personal pension products sold and increase the allocation of funds to long-term illiquid investments, demand in each market is likely to depend on its maturity and how issues related to taxation can be solved.

Published 3 November 2016
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