UK - Occupational and personal pensions will continue to be provided on a national basis despite European Union efforts to create a single pensions market, insurers claim.
The Association of British Insurers said that while there is potential for growth in the cross-border market, a “single market does not mean a uniform market”.
Deputy director Stephen Sklaroff added that while there are still barriers that need to be removed, legislation aimed at creating the cross-border market must avoid adding unnecessary costs to domestic suppliers and their customers.
Additionally, the ABI has studied the patterns of pension provision in six EU countries: France, Germany, Italy, Poland, Spain and the UK. Its research concluded that millions will have to rely on private provision as the EU’s rapid ageing population has forced governments to reduce state pensions’ value.
However, in the UK this will not happen unless the government does more to promote saving. The report concluded: “If tomorrow’s pensioners wish to enjoy the same levels of retirement income in relative terms as today’s, they will need to work longer or save more.”
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