European Commission Proposes Measures to Enhance Supplementary Pensions and Simplify Sustainable Finance Rules

On 20 November 2025 the Commission revealed new plans. These plans strengthen supplementary pensions and fix sustainable finance rules in the EU. They support the Savings and Investments Union. This Union builds wealth for households, sparks economic growth, and keeps the EU competitive.

Boosting Supplementary Pensions for Adequate Retirement Income

Public pensions alone may not be enough today. Therefore, the Commission works to add strong, extra pensions that help national schemes. The ideas connect closely, word by word, to build clear meaning. Key parts include:

• Enhanced Pension Tracking Systems:
  EU countries must build simple platforms. These platforms let people see all pension rights and expected benefits at once.

• Modernized Supervisory Framework:
  The Commission updates the IORP II Directive. This update ensures proper management and strong returns for savers.

• Revamped Pan-European Personal Pension Product (PEPP):
  New rules make PEPPs more attractive and low cost. These rules remove barriers and help more people join.

• Clarification of Investment Principles:
  The “prudent person” rule gets a clear update. This change aims for increased equity investment and a fair balance of risk and return.

These proposals let each Member State keep its pension design. They offer help without replacing public pensions.

Simplifying Sustainable Financial Disclosure to Foster Trust and Efficiency

The Commission also works on the Sustainable Finance Disclosure Regulation (SFDR). Here, simple rules and clear links make the text easy to follow. The changes bring benefits like:

• Reduced Reporting Burden:
  Only the largest market players must show social and environmental impacts. Detailed product data stays clear, comparable, and simple.

• Clear Categorization of ESG Products:
  Products now fall into three groups:

  • Sustainable: Directly help sustainability goals.
  • Transition: Guide companies or projects toward sustainability.
  • Environmental, Social, Governance (ESG) Basics: Use ESG ideas without fitting the top two groups.

• Combatting Greenwashing:
  Only products in a defined group may use ESG claims. This rule builds trust and holds companies to strict standards.

Next Steps

Plans for supplementary pensions and sustainable finance now move to negotiations. The European Parliament and the Council will work together to finalize the rules.

For More Information

• Commission press release on boosting supplementary pensions
• Q&A on supplementary pensions package
• Commission press release on simplifying sustainable finance rules
• Q&A on Sustainable Finance Disclosure Regulation

Summary:
These proposals by the European Commission use clear links between words. They aim to secure better retirement incomes with stronger supplementary pensions. They also foster honest and simple sustainable finance. This plan helps EU citizens build wealth and supports a trustworthy move toward sustainability.

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