EU Personal Pension framework

The European Commission aims at encouraging more savings into personal pension products, such as life and pension insurance products, to secure adequate retirement revenues in addition to social security-based and occupational pensions. A European Personal Pension Framework contributes to the objectives of the Capital Markets Union as it links long-term savers with long-term investment opportunities. Under the framework, it should be possible (1) for providers to offer products in other Member States, (2) for savers to sign up for products offered in other Member States and (3) for savers to transfer benefits across Member States if they move within the EU.
The consultation seeks views on how to best address potential obstacles to set up a successful European market for personal pension.

Implementation / enforcement 07/2012 - 12/2017

The EC launched a consultation on the development of an EU Personal Pension Framework. Follow up is expected in 2017.

Different regulatory requirements between the EU Member States limit the willingness of personal pension providers to provide personal pension products in other Member States. An EU framework harmonises the requirements and increases cross-border offering of personal pension products. The framework not only creates new opportunities for pension product providers but also creates strong competition between these providers. Several details remain to be fleshed out. Personal pension providers need to monitor the developments of the EU personal pension framework and create a vision on how to respond to industry changes due to increased competition. Participating in the debate or responding to consultations helps to be better informed of the regulatory requirements and resulting changes.

Further information:
European Commission: Personal pensions


Sabine Swaak Manager
Categories: Pension Market Organisation