The European Insurance and Occupational Pensions Authority (EIOPA) has launched two consultations on the development of pension tracking services and pension dashboards.
The two consultations, published today, are a response to the European Commission’s request for technical advice and are part of the implementation of the Capital Markets Union action plan.
The authority said the proposals were an “important step in helping citizens in their retirement planning”, which would look to support member states in identifying emerging gaps in their pension systems.
EIOPA’s first consultation paper, which addresses technical advice on pension tracking services, the EU pensions supervisor presents the development of best practices for the setting up a national pension tracking tool, an online application that will provide citizens with an overview of their future retirement income, based on their entitlements from all pension schemes in which they participate.
In particular, EIOPA has provided recommendations on:
- the role and scope of the pension tracking system such as providing an aggregated overview of accrued entitlements and projected retirement income from all possible pension sources in a simple and understandable manner;
- the information to be provided in a pension tracking system and how it should be presented to citizens, bearing in mind people’s cognitive and behavioural traits;
- the technical requirements for creating the pension tracking system such as live access and digital ID, uniformity of projections methodology and data transmission standards; and
- the governance and implementation strategy of a pension tracking system.
EIOPA has also identified a set of principles, good practices and examples that national authorities can use to facilitate people’s access to personal pension information.
The consultation paper drew on the experience provided by a Practitioners Network on current existing pension tracking systems within the European Economic Area as well as on responses from national authorities.
At the beginning of the year the pensions supervisor was looking for experts to join its Practitioners Network.
The second consultation paper, which is on pensions dashboards, sets out proposals for the development of such dashboards which will support the EU and its member states in monitoring the adequacy and sustainability of pension systems.
EIOPA has recommended the development of a live pension dashboard, an online visual tool that enables users to view and interact with different indicators through the same platform. The dashboard would provide a comparable, transparent and up-to-date view of the adequacy and sustainability of national pension systems, it said.
EIOPA’s technical advice also proposes that the existing adequacy and sustainability indicators proposed by the EC such as demographic and macroeconomic assumptions are complemented also with indicators that relate to private pension providers, including insurance undertakings and institutions for occupational retirement provision.
EIOPA is inviting stakeholders to provide feedback to both consultation papers by responding to questions via an online survey by 8 September.
The final advice to the EC will be submitted in December 2021 together with feedback statements on the consultation responses of stakeholders.