Preparing for a good life in retirement needs a “rethink” and should be done so “holistically”, according to European Insurance and Occupational Pensions Authority chair, Petra Hielkema.

Speaking to the Economic and Monetary Affairs Committee of the European Parliament yesterday, 14 October, Hielkema noted that the pensions gap is one of EIOPA’s priorities.

“With an ageing population and a shrinking labour force, we need to rethink how we organise a good life in retirement for all EU citizens and we need to do so holistically. Learning from successful pension systems, we know that a holistic view across the three pillars of pensions is essential: state pensions (pillar 1), occupational pensions (pillar 2), and personal pensions (pillar 3),” she said.

Hilekema believes this holistic overview can be achieved through the development of pensions dashboards and pensions tracking systems, which would improve transparency and awareness.

In addition, she said the introduction of auto-enrolment schemes in other member states would increase occupational pensions coverage. Hielkema also wants to incentivise uptake of personal pensions products by facilitating decision-making, promote financial literacy and offer simple products that give value for money.

“Here we would welcome a reform of the Pan-European Personal Pension Product (PEPP) and stand ready to work with [ECON] on the IORP II review,” she said.

---