Moscow. June 29. INTERFAX.RU – the European Commission presented on Thursday a project to create a new category of pension to widen the choice of European consumers. “Today we propose to lay the foundations of the European single market for private pensions. We offer a new voluntary system of accumulating money for their retirement,” – said Thursday at a press conference in Brussels, the Vice-President of the European Commission on financial stability and financial services Valdis Dombrovskis.
He explained that the proposal is intended to complement existing national pension regimes in EU countries. “Europe confronts an unprecedented demographic challenge. In 2060 every pensioner will have only two able-bodied person in four today,” added the Commissioner. He noted that the current system of social protection in the EU is already carrying a load.
According to him, put forward by the European Commission the project will provide operators of pensions “simple and innovative tools that will enable them to offer an individual a pan-European pension product, called PEPP”. This new type of pension was designed to give investors more choice and more competitive financial product when they want to save money for old age.
The European Commission announced that PEPP will have the same basic characteristics across the EU. It will be able to offer different service providers – banks, insurance companies, professional pension funds, investment companies and asset management. In the proposal of the European Commission recommended that member States of the EU applied to the new pensions shared tax approach that exists in the countries of the Union in relation to the national pension products, which will soon start PEPP. In Brussels also expect PEPP for the first time will support a European Commission plan to the capital market, allowing you to target more savings on long-term investments in the EU.
According to Dombrovskis, the new pan-European personal pension product “is an important step towards the completion of the Union of capital markets”.
“It represents a huge potential, because it will give investors throughout the Union the benefit of choice when they get to defer money for retirement. It stimulates competition by allowing more operators to offer this product outside their national markets. It will work as a sign of quality, and I am convinced that it will also support long-term investments in capital markets”, – explained the Chairman of the European Commission.
The depositor will have the right to change their provider services on a national scale and in cross-border at a fixed price every five years. Product PEPP can be moved from country to country in the EU to the depositor when moving to another state in the Union could continue to use them.