Data is “the answer” to plugging the pensions savings gap that exists across Europe, according to the European Insurance and Occupational Pensions Authority (EIOPA) chairperson, Petra Hielkema.

In a statement to the Economic and Monetary Affairs Committee of the European Parliament delivered yesterday, 23 October, Hielkema said: “The good thing is that a lot of data already exists. The challenge is bringing it together.”

Hielkema believes that pension dashboards and a pension tracking service are two ways of bringing the data together – dashboards, in particular, can “provide accessible data in one place”.

“Such overviews do not exist at EU and national levels and I encourage you and the other EU institutions to take steps to come to one dashboard. Only with a full overview we can locate and measure the gap and close it.

“EIOPA also recommends the development of pension tracking systems to provide information to consumers to help them make better decisions about their long-term savings,” she stated.

In 2022, more that 36 million people in Europe were contributing to a workplace pension and more than 11 million people were in receipt of one. However, Hielkema said too many people will not have a sufficient income when they retire, with women particularly at risk.

Furthermore, she said better options for long-term savings are also fundamental to closing the pensions gap. She said EIOPA welcomes the Retail Investment Strategy as a means to strengthen the Capital Markets Union from the bottom up.

Another area that can encourage saving, she said, is the digital transformation, in which she said there are opportunities for both product manufacturers and consumers, including through cross-border business resulting from passporting.

“But we see a growing need to adapt supervision to this new digital, cross-border landscape. Issues often arise when home supervision and coordination with host supervision are inadequate, particularly in cases involving complex life products and niche markets. In these cases, EIOPA uses the powers that it has to address cases but too often the outcome is too little too late.

“Hence we need to strengthen cross-border supervision as it is becoming increasingly clear that to deal with these issues effectively and to prevent consumer harm, EIOPA should be in a stronger position to intervene and prevent the detriment from continuing.”

During her statement, Hielkema also touched on two of EIOPA’s other priorities – sustainable finance and digitalisation. She said the two “continue to have a profound impact on both the insurance and pensions sectors”.

“In both cases, our focus is on supporting the sectors to adapt, to seize the opportunities that arise, while ensuring that policyholders and beneficiaries remain protected.”

In conclusion, she noted that a robust regulatory framework is vital to underpin the effectiveness and stability of both sectors.

“Here, EIOPA has had a number of regulatory initiatives on its radar. This includes the review of the IORP II Directive for occupational pensions, where our goal has been to embrace the future while protecting the legacy.”

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