PensionsEurope – WG IORP and WG PPP – EIOPA publish 2021 Consumer Trends Report

Consumer Trends Report 2021 – EN

We would like to inform you that today EIOPA published the 2021 Consumer Trends Report. You can find the report attached or download it here.

The report covers both the insurance and the pension sectors, identifying market developments, trends, and (new) risks for consumers and members/beneficiaries.

The second chapter of the report focuses on pensions and distinguishes between IORPs and Personal Pension Products (PPPs). After having shortly described the market developments and issues, the report also includes two specific topic areas, respectively on sustainability in the pension sector and impact of COVID-19. The two final sub-chapters (2.3 and 2.4) are dedicated to the complaints filed and to NCAs’ supervisory activities.

Please find below a short summary of the main findings:
– On IORPs
o a shift from state pensions to private pension providers is observed – the total number of members and beneficiaries of IORPs in the EEA increased
o the shift from DB schemes to DC, already identified in previous editions of the report, remains noteworthy
– On PPPs
o The number of contributors to personal pension products increased in most jurisdictions
o Trends in personal pension markets continue to vary significantly across countries
– On sustainability in the pension sector
o In light of the SFDR, pension funds have begun to update their internal investment policies and disclosure document. Nevertheless, the scale varies and it is early to assess its adequacy.
o Only a few Members States observed a remarked increase of occupational pension products or personal pension products with a sustainable investment objective (DK, EE) while in others a slight increase was observed (AT, LV, LT, PT).
o Most NCAs shared their intention to conduct thematic reviews to monitor the implementation and outcome of these new sustainability requirements.
o The way pension providers conduct their business is expected to be re-shaped in the near future as a consequence of the SFDR rules. The scheme design and the asset allocation are anticipated to be revised, as well as the engagement with consumers and beneficiaries
– On the impact of COVID-19
o The impact of COVID-19 has not been uniform across countries. Several Member States cannot conclusively say whether the COVID-19 crisis has negatively impacted pension contributions.
o Nevertheless, almost one third of the national markets reported a decrease in contributions mainly due to shrinking in business (sponsor contributions) and lower personal income.