BETTER FINANCE welcomes the European Commission’s new “Supplementary Pensions Package”, which includes proposed reforms to occupational pensions (IORP II), the Pan-European Personal Pension (PEPP), and new recommendations on pension tracking systems, dashboards and automatic enrolment.
The organisation says the package contains several important improvements for European savers, particularly on governance, flexibility and disclosure. However, it warns that key gaps remain in ensuring that citizens receive fair, transparent and good-value retirement outcomes.
Hidden fees still eroding pensions
BETTER FINANCE highlights the continuing lack of awareness among savers about the long-term impact of pension fees, warning that even small annual charges can significantly reduce retirement income.
The organisation stresses that annual fees of around 2% can cut final pension returns by nearly half over a working lifetime compared with low-cost alternatives, often without savers realising it.
It therefore broadly welcomes stronger EU efforts to improve transparency, including clearer pension benefit statements and better disclosure of cumulative costs and long-term performance.
“People deserve to know how much of their retirement savings is being eaten away by charges,” said Sébastien Commain.