Lobbying Activity
Meeting with Didier Millerot (Head of Unit Financial Stability, Financial Services and Capital Markets Union)
27 Jan 2026 · SFDR Review: Market Impact Analysis
Response to Supplementary pensions – review of the regulatory framework and other measures to strengthen the sector
21 Jul 2025
Building sufficient personal retirement provisions to provide supplemental income to public pensions that will last through longer life expectancy and longer retirements is vital to securing a comfortable retirement. Further, while many retirees are receiving some of their income from occupational defined-benefit schemes, the number of schemes continues to decline, together with the number of current employees accruing benefits in such schemes. Consequently, the number of people who have the security of knowing they have guaranteed income, and the level thereof, for the duration of their lives is shrinking. Occupational retirement schemes have a sizeable role to play in providing secure and cost-effective pension accumulation for employees. Morningstar research finds defined-contribution schemes already thriving in some markets and at a more embryonic stage in others. While the availability of pension accumulation options is growing, albeit with challenges, our research finds that, in general, countries are less advanced in providing a range of clear and understandable decumulation options, whether via annuitization or drawdown or a combination of the two. The complexity of pensions and the importance of people taking the best decisions in the context of their overall financial assets cries out for more progress on the twin issues of investor-education and cost-effective access to unconflicted financial advice, guidance or support. We recognise the reality that each country has distinct variations in how they harmonize social security, occupational, and personal retirement provisions within their overall fiscal environment. Against this backdrop, Morningstar is supportive of this EC initiative to identify and highlight practices that have been successful in some places, as well as challenges that exist in others. In this context, we summarise key takeaways from Morningstars research on occupational pensions systems as examples of the potential benefits that could accrue from the ECs work: The transition to DC is putting investment risk and decision-making squarely on citizens. Getting unconflicted fiduciary advice to workers and retirees cost-effectively is a challenge still eluding most countries. Choice is good. Too much choice is counterproductive. Some countries are better than others at limiting and presenting investment choice so that participants are more likely to select a high-quality, low-fee, investment option. Good default investment options are vital. Individuals need solutions appropriate to their age and time to retirement, and a framework that provides checks and balances to provide reassurance that their plan is meeting their objectives and doing so cost-effectively. Fragmentation is a problem. Minimizing the number of separate plans that workers hold lowers costs and increases engagement. Various approaches exist, such as (a) plan-follows-member; (b) consolidating legacy plans into a paid-up plan; and (c) auto-transferring small, orphaned plans to an individuals primary plan. Savings incentives are beneficial and auto-enrolment programs have been effective. Tax-advantaged saving has promoted pension saving in some countries. Auto-enrolment has got more people saving earlier. No implementation is necessarily better or worse than another, but all have scope for expansion e.g. in terms of worker eligibility and contribution levels. Setting permissions for access to pension savings is a balancing act. Too restrictive might discourage saving. Too flexible might result in retirement savings being depleted. Varying approaches exist. Engaging savers is a significant challenge. We found some positive examples of proactively engaging members, including dashboards, guided websites and guidance services as people approach retirement. We attach a copy of our full research paper for reference and will be pleased to engage further if it would be helpful as the Commissions work progresses.
Read full responseMeeting with Tatyana Panova (Head of Unit Financial Stability, Financial Services and Capital Markets Union) and FTI Consulting Belgium and
21 Jan 2025 · Benchmark Regulation