EUROPE - Strong returns on European long-term savings are being hampered by an expensive and "highly inefficient" pensions market, the European Fund and Asset Management Association (EFAMA) said.
The association said Europe's ageing population will give rise to greater individual responsibility for securing adequate retirement income. Many European households will have to save more, longer and better for retirement, and in order to achieve their savings targets, households will need the highest possible return on their long-term savings.
However, it warned this was being impeded by a highly inefficient pensions market where fragmentation of markets is too high, access is too limited, costs are too high, innovation too low and choice too limited.
It said the development of a single market for pan-European pension products would be an important step towards improving long-term saving, and has put forward proposals to introduce a personal retirement plan with consistent standards across Europe, referred to as an "Officially Certified European Retirement Plan" (OCERP).
Speaking at the association's European conference on European long-term saving, held in conjunction with Carmignac Gestion, EFAMA president Jean-Baptiste de Franssu said: "It is our duty as an industry to take part in the debate begun with the publication of the [European Union's]Green Paper on pensions.
"Modernising pension policy in the EU is a must."
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