The European pension is coming as another option for pension savings starting next year, announced EIOPA, the European Insurance and Occupational Pensions Authority, as reported by Večernji list on Friday.
What has already received an unofficial name 'European pension' in European media is officially called the Pan-European Personal Pension Product (PEPP) and it is not about pension savings through either the first or second pillar, which are the terms most familiar to Croatians as they are another name for mandatory pension contributions, but rather about private savings for so-called supplementary pensions.
The European pension, as PEPP, is designed as a supplement to mandatory, nationally regulated pension insurance and private pension insurance, which is used much more in some member states than in Croatia.
The European regulation on PEPP was already adopted a year ago, but for this pan-European pension product to be available on the market, the Commission needs to regulate many more details through a delegated act, which is expected soon.
The reason for creating such an additional European pension lies in the assessment that practically all EU member states will face pressure on the sustainability of pension systems due to an aging population. Many experts believe that pensions based on the principle of generational solidarity will decline over time, which is why all actors – states, companies, and citizens – are encouraged to move towards supplementary pensions, which are an important source of income for many retired Europeans, reports Večernji list.
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