Less than half (45 per cent) of consumers in EU member states feel confident in their financial ability to live comfortably through retirement, according to research from the European Insurance and Occupational Pensions Authority (EIOPA).

This leaves the majority of consumers concerned about having enough savings for retirement.

EIOPA noted that there were important differences across member states when it came to pension coverage, with 64 per cent of people in the Netherlands confident they will have enough money for a comfortable retirement.

Meanwhile, the proportion of people confident in their financial ability in retirement in Greece, Poland and Latvia was below 30 per cent.

In its Consumer Trends Report, EIOPA revealed that access to affordable pension products aligned with consumers’ needs remained low.

More than a third of EU member state consumers did not own any savings products.

Furthermore, EIOPA stated that the worsening macroeconomic landscape and rise in inflation were putting pressure on consumers, who might have to suspend voluntary contributions to pension schemes as a result.

While the report noted positive developments in consumer-centric product design and distribution processes, instances of poor product design and concerns regarding value for money remained.

Additionally, while the continued digitisation of the pension sector was leading to expanded access to products and services, and improved pricing, EIOPA said digitisation trends required close monitoring due to cyber risks and possible discriminatory pricing practices.

The report showed a strong increase in the sale of sustainable products in recent years, with this rise highlighting the importance of ensuring sustainability-related claims are not misleading or unsubstantiated, EIOPA noted.

Some national competent authorities (NCAs) highlighted evidence of greenwashing in their markets and 58 per cent of responding NCAs said they planned to carry out supervisory activities to tackle greenwashing.

The report also highlighted the existence of gaps in the pensions market, including a gender gap on access to pension products.

“Over the past years, policymakers, regulators and service providers have sought to ensure that financial services contribute to the financial well-being of consumers and businesses, helping them meet unexpected costs with insurance and save for retirement through well-designed pension products,” commented EIOPA chair, Petra Hielkema.

“Despite some progress, concerns remain and addressing them has become even more important in light of recent shocks.

“Within our sectors, the current cost-of-living crisis must be seen as a call to decision-makers along the value chain to remedy known issues with consumer-centric solutions and thus alleviate the pressure on people and small business owners that are struggling to make ends meet.”

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