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

On 20 November 2025 the Commission set out new plans. The plans boost pensions and clear up finance rules. The ideas help savings grow, secure retirement money, and spur green investment. They also aid the EU’s growth and strength.

Enhancing Supplementary Pensions for Better Retirement Security

Addressing Retirement Income Gaps

The Commission sees that public pensions do not cover all needs. Their plan adds extra pensions. These extra pensions work with public ones. They do not change the public plans.

Key Pension-Related Measures

• Pension Tracking Systems: EU countries will build tracking systems. These systems bring pension info together. They show rights and expected benefits. This change makes the process clear.
• IORP II Directive Modernization: The plan makes the IORP rules stronger. Better rules help people earn more from pensions.
• Pan-European Personal Pension Product (PEPP): Fewer limits will help the PEPP grow. The product becomes easier, cheaper, and more inviting.
• Clarification of the ‘Prudent Person’ Principle: The new steps let providers invest more in equities. This change boosts growth and returns.

Simplifying Sustainable Financial Disclosure to Support Trust and Efficiency

Context and Purpose

The proposals also cut down on complex rules. They update how sustainable finance is shared. The new way is simple and clear. It helps investors decide well and cuts costs for providers.

Main Amendments Proposed

• Streamlined Disclosure Requirements: Only very large firms must share their impacts. Product details will focus on clear, useful data.

• Clear ESG Product Categorization: Products with ESG claims now fit in three groups:

  • Sustainable: These products add directly to green goals.
  • Transition: These products back firms that edge toward green.
  • ESG Basics: These products use basic ESG ideas.

  The rules limit ESG words in names and ads. This step fights greenwashing and builds trust.

Next Steps and Impact

Negotiations continue with the European Parliament and the Council. If accepted, these changes will give citizens better pensions and more reliable green rules. This mix supports clear rewards and steady investments for all.

For more details, see the official European Commission press releases and the Q&A on pensions and green finance.

Summary Keywords: European Commission, supplementary pensions, retirement income, IORP II, PEPP, sustainable finance, ESG, greenwashing, pension tracking, green investments.

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