The future of pensions and retail investment in the EU
By Maximilian Bierbaum & Sheenam Singhal
In the debate on the future of capital markets in Europe, widening retirement saving and widening retail investment are the potential missing link. But there is a danger that by dealing with the two topics in isolation, EU policymakers will miss the bigger picture. We think this needs to change. Neither pensions nor more retail investment can solve this problem on their own. To really move the dial, we need both – and there is evidence from Denmark and Sweden that at their best, retirement saving and retail investment can feed each other.
Over time reforming both could have significant, positive outcomes for millions of individuals in every corner of the EU – and for the wider European economy. For households, reforms could help increase their financial wellbeing and secure their financial futures. For the economy, reforms could unlock trillions of euros of additional long-term capital that is much needed to meet Europe’s investment needs. Supporting the EU’s ageing population and channelling more investment into companies, infrastructure projects, and other long-term projects can help the EU successfully achieve its green and digital transition and is directly related to Europe’s competitiveness.
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