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

On 20 November 2025, the European Commission unveiled proposals. It acted to boost pensions and to simplify sustainable finance rules. The proposals link public pensions to new, stronger supplements. They also bring EU savings and investments closer to sustainable goals.

Strengthening Supplementary Pensions for Adequate Retirement Income

The Commission saw that public pensions may not keep up with living needs. It made plans to create stronger and simpler supplementary pension options. Each idea connects clearly to its goal. Key parts include:

• Enhanced Pension Tracking Systems: Tools help citizens track their pension rights quickly and see estimated benefits.
• Modernizing IORP II Directive: Changes improve management and oversight. They aim to give savers better returns.
• Revamping PEPP (Pan-European Personal Pension Product): Simpler design and fewer barriers make this product more cost-effective and appealing.
• Clarifying the ‘Prudent Person’ Principle: New guidelines push investments toward equities. They boost growth while staying clear in their intent.

The proposals let each member state shape its own pension plans. They work to raise both the supply and demand of supplementary pensions.

Simplifying Sustainable Finance Disclosure to Boost Trust and Efficiency

The Commission also changed the rules for sustainable finance. It aimed to make ESG rules simple and practical. The changes work word by word, with ideas tightly linked. They include:

• Simplified Disclosure Requirements: Only big financial players need share their environmental and social data. This cut keeps details clear and comparable.

• Clear Categorization of Financial Products:

  • Sustainable: Products that directly support clear sustainability goals.
  • Transition: Investments that help entities move toward full sustainability.
  • Environmental, Social, Governance Basics: Products that add ESG ideas without a full shift.

• Combatting Greenwashing: Only products in the clear categories may use ESG claims in names and ads. This rule builds trust and cuts false claims.

Next Steps

The proposals now move to talks in the European Parliament and the Council. They seek formal adoption soon. These measures aim to build long-term wealth for EU citizens and to support clear, efficient sustainable markets.

Further Reading and Resources

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

Published by Directorate-General for Communication, European Commission, 20 November 2025

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