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

Date: 20 November 2025
Source: Directorate-General for Communication, European Commission

Overview

The Commission puts forward a clear plan. Its goal is to boost extra pensions and ease rules for green finance. This proposal works as one part of the EU’s Savings and Investments Union Strategy. It helps people build wealth using the capital markets and supports economic growth. Each word links closely to its head, so ideas stay near each other.

Boosting Supplementary Pensions

Public pensions may fall short for a good retirement. The Commission wants to add strong extra pensions that work with national pensions. It respects each state’s control of pensions while raising both the offer and the need for extra pensions.

Key Measures Include:

• Pension Tracking Systems:
  Countries build smart digital tools. These tools show clear pension rights. They list expected benefits for many schemes.

• IORP II Directive Update:
  The Commission updates rules for Institutions for Occupational Retirement Provision. These new guides secure fair management and improve returns.

• Pan-European Personal Pension Product (PEPP):
  PEPPs become more appealing and easier to get. They lose burdensome rules that once stopped many people.

• Prudent Person Principle Clarification:
  Clear advice helps IORPs and PEPP managers invest wisely. They are urged to invest more in equity markets to support growth.

Simplifying Sustainable Financial Disclosure

The Commission also wants to clear up the rules for sustainability. It reforms the Sustainable Finance Disclosure Regulation so that the rules match market needs. Each connection stays tight for clarity.

• Streamlined Disclosures:
  Only the biggest market players need to share detailed environmental and social data. Product details focus on clear and comparable facts.

• Clear Categorization of ESG Products:
  Three groups now define ESG claims:

  • Sustainable: Products that directly help meet green goals.
  • Transition: Products that support companies on a clear green path.
  • ESG Basics: Products that use ESG ideas, even if they do not fit the other groups.

• Combatting Greenwashing:
  The rules stop false ESG claims in names or ads. This builds trust and makes the market more open.

Next Steps

The proposals now move to the European Parliament and the Council. They will discuss and approve the changes to the IORP II Directive, the PEPP Regulation, and the SFDR.

Additional Information

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

Conclusion

The proposals show a clear step forward. The Commission works to secure better retirement incomes and a fair green investment market. With extra pensions and simple disclosure rules, the EU builds a transparent, strong, and open financial world for all.

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