EU-designed pension product gets go ahead from EU institutions

BEUC NEWS - 13.02.2019

An agreement has been reached today on a proposal to create a pension product that would be available to people in all EU countries. This product, also known as a pan-European Pension Product, is supposed to be a simple, standardised and cost-effective option that will offer pension savers more choice when saving up for their retirement. Consumers will be able to contribute to it regardless of the country they live in or move to.


The deal reached today limits the costs and charges that providers can set for the basic version of the product at 1% [1], which is a great victory for its potential consumers. Fees can have a significant impact on the final pension pot that a saver accumulates [2].

The proposal will become EU law once it is officially adopted by the Council and by the European Parliament. The vote in Parliament is scheduled in March 2019.


[1] In December, BEUC sent a letter to EU negotiators calling for a fee cap to be adopted in the final EU rules on the pan-European Pension Product.

Under the agreement that was reached today, the European Insurance and Occupational Pensions Authority (EIOPA) will be required to draft Regulatory Technical Standards (RTS) specifying the types of costs and fees which should be included within the cap. To ensure that the future pan-European Pension Product is truly a cost-effective option for consumers, BEUC believes that all fees and costs associated with investing into a pension product should be included within the cap.

[2] A study by the Danish Consumer Council shows the high impact that fees can have on investment returns. According to the study, a difference of just a single percentage point in the costs of a consumer’s pension savings may mean that the average Danish consumer would need to stay for four more years in the labour market in order to be able to attain the same pension.