EFAMA identifies four key areas for improvement

EFAMA welcomes the high degree of ambition and clear call to urgent action put forward by former European Central Bank President Mario Draghi to address the EU's competitiveness challenges and reverse the ongoing trend of slowing growth and declining productivity. Improving the EU’s global competitiveness is vital for preserving EU’s prosperity in the long run, enhancing investment opportunities and attracting more capital into the EU.

We particularly agree that the underdevelopment of the occupational and private pension systems in many EU Member States is limiting the flow of capital into the markets. Strengthening these pillars is essential for increasing the volume of finance available in capital markets, providing a stable and long-term source of funding for the EU economy.

Bernard Delbecque, Senior Director at EFAMA, commented: “Increasing coverage of supplementary pensions in Europe will require reform in four key areas. Firstly, individuals need to be better informed about the importance of long-term savings products to secure adequate income in retirement. Secondly, governments should provide sufficient tax incentives to encourage retirement savings, helping individuals overcome the natural tendency to prioritise short-term needs. Thirdly, member states should learn from best practices in other countries, like automatic enrolment for occupational pensions and life-cycling strategies to increase the proportion of pension savings invested in higher-yielding assets. Fourth, but by no means last, the Pan-European Personal Pension Product (PEPP) needs to be reviewed and simplified to address current challenges and make it a viable product.”

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Notes to Editors

Read the full report of Mario Draghi here.

For further information, please contact:

Hayley McEwen

Head of communications & membership development