Towards Annual Pension Statements Across The EUPage 1
Recognising that people are not preparing enough ortheir uture, Aviva engaged in a pan-European pensionsdebate with its 2010 publication “Mind the Gap”. Ourambition was to establish where key partnerships andsolutions might lie which would make retirement richerin every sense and help build a culture o sustainablesaving across Europe.
The conclusions o this report were clear.Ignoring Europe’s
1.9 trillion annual‘pension gap’ - the dierence betweenthe amount people need or an adequatestandard o living in retirement and theamount they are currently saving - is notan option. Without action, individuals willneed to consider reducing their standard oliving in retirement, retiring later, workingin retirement or relying on other orms osaving.Changing people’s attitudes to saving andhelping them to better understand thenancial choices they need to make is anambition held by Aviva. Whilst most MemberStates oer some orm o inormation onState pensions, only three integrate Stateand occupational inormation in statements
.We believe providing annual pensionstatements would prompt individuals to takeaction as a result o seeing clearly what theystand to receive in retirement. Accordingly,our belie is that once a year, every year,all adult citizens in the EU should receive auser-riendly statement o their projectedincome in retirement. This should include thelevels o State provision, as well as expectedentitlements accrued in occupational orprivate pension schemes.Engaging with a group o key policy-makersand infuencers in France, Italy, Ireland,Spain and Poland or this report has been animportant rst step in testing the concepto a consolidated pension statement. Whilesupport or the concept is clearly evident,a number o hurdles are also oreseen andsome barriers identied which need urtherconsideration.I hope you nd this report to be a useulcontribution to the ongoing debate ahead othe publication o the Pensions White Paperlater this year.
CEO, Aviva Europe
First pillar: mandatory basic pension rom the Government, including compulsory occupational schemes; Second Pillar: voluntaryoccupational pension schemes; Third pillar: voluntary private pension plan that an individual purchases