A resilient, multi-pillar pension system is essential to secure an adequate retirement income for citizens and to channel long-term capital into Europe’s future priorities. Insurers, managing €9.5 trillion in assets, 70% invested within the EU, play a central role in providing pension solutions and supporting Europe’s long-term investment needs. Drawing on its longstanding experience as providers of occupational and personal pensions, as well as long-term investments, the insurance sector stands ready to contribute expertise to ensure the new framework delivers on its objectives.
The package, and particularly the review of the Pan-European Personal Pension Product (PEPP) regulation, offers an opportunity for a strategic reset. Greater flexibility for providers by enabling them to offer tailored PEPPs without a mandatory Basic PEPP is a welcome development, as it creates room for innovation and tailored solutions that meet the diverse needs of savers. Insurance Europe’s 2025 Pension Survey* confirms this diversity of needs and preferences, and savers’ appetite for the protection offered by guarantees: 81% of savers prioritise products that guarantee at least their capital, compared to only 19% who are willing to take higher risks for higher returns.
The industry’s priorities for strong multi-pillar pension systems and successful PEPP deployment are:
Respect for diversity: EU measures must avoid a one-size-fits-all approach and respect the diversity of national pension systems, regulatory frameworks, and market structures.
Transparency and comparability: Support the development of pension tracking systems and dashboards to improve transparency, comparability, and informed decision-making for savers.
Long-term focus: Prioritise sustainable retirement outcomes over short-term investment performance. Personalised advice: Ensure tailored guidance for informed decisions and trust.
Flexible risk mitigation in PEPP: Allow guarantees and life-cycling to meet diverse saver needs.Annuities and decumulation in PEPP: Promote annuities through tax incentives, alongside other options.Value for money: Replace rigid fee caps with national flexibility to encourage innovation.
Thea Utoft Høj Jensen, Director General of Insurance Europe, said: “The Savings and Investments Union is central to the EU’s ability to deliver growth and financial security for its citizens, and insurers are committed to this objective. Well-functioning supplementary pension systems are instrumental to strengthening long-term savings and channelling investment into Europe’s future priorities.”
Nicolas Jeanmart, Head of Personal & General Insurance, added: “We’re pleased to see several important changes proposed in the PEPP framework. The removal of the fee cap and mandatory compartments represent a significant improvement. Greater flexibility for providers has the potential to foster innovation and deliver solutions that meet savers’ needs. Maintaining risk mitigation tools, like guarantees, is also essential.”
*Results to be released on 25/11/2025
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