PensionsEurope answers the European Commission’s call for evidence on the Savings and Investments Union
Brussels, 11 March 2025 – PensionsEurope welcomes the European Commission’s consultation on the Savings and Investments Union (SIU) and has responded by assessing potential initiatives that could enhance the development of funded pensions in the EU and support pension funds and their activities.
Developing capital markets
We support the European Commission’s efforts to complete the Capital Markets Union (CMU). While progress has been made, including the adoption of Faster and Safer Relief of Excess Withholding Taxes (FASTER), further actions are needed to improve market integration and enhance cross-border investment efficiency.
Contribution to the European economy
The SIU seeks to channel private investments into Europe’s economy and key growth sectors. Pension funds, as long-term investors, can contribute to this goal. However, the fiduciary duty is part of their legal obligations, and must not be compromised for other policy objectives.
Auto-enrolment: expanding pension coverage
Auto-enrolment has successfully increased participation in occupational pensions in countries such as the UK and Lithuania. We call on the European Commission to include auto-enrolment in its country-specific recommendations of the European Semester to increase pension coverage in the EU.
Developing long-term savings products and/ or personal pensions products
We support the development of long-term savings products and/or personal pension products, but both need to be distinguished as they often have different tax treatments across Member States. Given PEPP’s limited uptake, explained by obstacles like the fee cap, we believe that endorsing and enhancing national products is a more effective approach.
Tax incentives
Tax incentives are important to boost participation in occupational and personal pensions. The EU should encourage Member States to implement them through the country-specific recommendations of the European Semester. Well-designed tax benefits can also channel savings into productive, high-return assets, making personal pensions more attractive to citizens.
Simplifying regulation for pension funds
We support the European Commission’s agenda for simplification. The impacts of horizontal legislation are significant for pension funds, which are often not-for-profit and managed by social partners. In particular, smaller and cost-efficient pension funds have been largely impacted by broad legislative and Level 2 measures.
PensionsEurope remains committed to working with the European Commission and other stakeholders to strengthen retirement security for European citizens, with funded pensions playing a key role in achieving this goal.
Our full answer is available here.
For more information, please contact us at info@pensionseurope.eu.
