July 2025

ESG round-up: Investors call for EU to preserve key parts of sustainable finance rules

More than 80 investors and financial institutions have called on the EU to preserve the core of the EU Sustainable Finance Framework. Key European investors supporting the statement include Allianz SE, First Sentier Investors, La Banque Postale AM, Nordea, PKA and Storebrand AM. The signatories stated that regulatory simplification can be achieved without compromising on the substance of sustainability rules or their significant benefits for businesses across the EU. They have recommended that the European Sustainability Reporting Standards – which...

June 2025

PensionsEurope’s Position Paper on the European Commission’s Omnibus Simplification Proposal

By Pension Europe PensionsEurope welcomes the European Commission (EC) initiative which aims to align crucial EU legislation concerning Sustainable Finance. PensionsEurope firmly believes that the competitiveness of the EU economy is vital, it is possible to reduce the administrative burden without undermining the EU's policy objectives regarding the green transition. However, any simplification should be carefully balanced to ensure that material sustainability information on risks, opportunities, and impacts-critical to informed investor decision-making-is preserved. Accordingly, the Omnibus package should aim to streamline...

May 2025

EU. Hundreds of ESG funds renamed as ESMA guidelines kick in

Nearly 700 investment funds have had their names changed to avoid falling foul of new sustainability rules from the European Securities and Markets Authority (ESMA). NGOs Finanzwende, Urgewald and Facing Finance have found that 674 funds were rebranded to stay on the right side of the EU supervisor’s fund-naming guidelines, which came into force fully last week. The rules require funds that use language associated with six themes (transition, environment, social, governance, impact and sustainability) to invest at least 80% of their...

European semester thematic factsheet adequacy and sustainability of pensions

Pensions are the main source of income for older people in Europe, coming mostly from 'pay-as-you-go' public schemes. Retired people drawing a pension are a significant and — due to demographic ageing — a growing part of the EU population (about 124 million, or a quarter of the total population1). European pension systems are facing the dual challenge of remaining financially sustainable and being able to provide Europeans with an adequate income in retirement. The key purpose of pension...

April 2025

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...

Digital Transformation of Public Pensions a Case Study of Four European Countries

By Alina Mihaela This paper delves into the pension systems of four European nations – Lithuania, Latvia, Estonia and Romania – offering a comprehensive analysis of their respective structures, digitalization efforts and potential for harnessing artificial intelligence (AI) for public benefit. It paints a vivid portrait of the various approaches to pension systems and digitalization strategies in these four European countries. It illuminates the potential of AI and technology to drive progress in the public sector, ultimately improving citizen well-being...

Varying effects of public pensions: Pension spending and old-age employment under different pension regimes

By Kun Lee Socioeconomic consequences of pension reforms have often been discussed without careful consideration of institutional contexts, despite the fact that institutional designs of public pensions differ substantially across countries. This study argues that the outcomes of pension reforms vary depending on the institutional structure of public pensions, by showing that the associations between public pension spending and old-age employment rates of different socio-demographic groups vary across different institutional contexts. Using time-series cross-section data from 20 European countries and...

EIOPA launches liquidity stress test of European pension funds

The European Insurance and Occupational Pensions Authority (EIOPA) has launched its fifth stress test of European occupational pension funds, assessing the impact of two adverse economic scenarios on the liquidity position of IORPs and the overall sector. The two scenarios simulate sharp increases and declines in interest rates, respectively. “In the ‘yield curve up’ scenario, EU interest rates increase sharply as market participants anticipate economic developments related to the abrupt escalation of geopolitical tensions,” said EIOPA. “These geopolitical tensions cause disruptions in...

Conversion in the Act on Future Pensions, sailing to safe harbour?

By Hans van Meerten & Adrienn Pásztor This article explores the transformation of rights and entitlements during the transition to a new Dutch pension system within the second pillar for occupational pension schemes. It provides an examination of various national legal challenges such as the contractual basis and retrospective nature of this conversion process, alongside relevant aspects of European law including property rights and effective legal protection under the European Convention on Human Rights (ECHR) and the Charter of Fundamental...

February 2025

Could Retirement Finance Reform Reboot the European Economy?

The European Union is grappling with two interlinked crises that threaten its long-term economic stability: a severe shortfall in risk capital and an impending pension crisis exacerbated by demographic aging. Recent reports by Mario Draghi and Enrico Letta have sounded the alarm on the EU’s moribund growth prospects, highlighting a critical lack of investment liquidity for innovation and infrastructure. At the same time, Europe’s dominant pay-as-you-go pension systems are in an actuarial death spiral as the working-age population shrinks...