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Pan-European pension market urged by Hayes

Ireland should be pushing for greater pension coverage for its working population, says MEP

“In Ireland, only 41 per cent of the working population is covered by a private pension scheme,” Brian Hayes said. Photograph: Alan Betson
“In Ireland, only 41 per cent of the working population is covered by a private pension scheme,” Brian Hayes said. Photograph: Alan Betson
Fri Jul 17 2015 - 02:00

Consumers should be able to shop around for pensions across Europe, Irish MEP Brian Hayes has said.

His comments come as Europe’s pension authority begins a consultation process to examine how a pan-European pension product could be developed.

“Everyone should be able to buy products from wherever they want in – that’s why we have an internal market,” said Mr Hayes.

“A pan-European pension product would ensure that there is a level playing field for all pension providers across Europe and it would remove barriers for people who want to avail of pensions in different countries.”

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The European Union has spent the past three years examining options for and barriers to a pan-European pension product.

In July 2012, the European Commission asked the pensions authority – the European Insurance and Occupational Pensions Authority – to develop technical advice on creating an internal market in the EU for pension schemes.

Following an initial discussion paper and a preliminary report, published in May 2013, further detail on the project was sought in July last year. The current consultation paper is the result of that request and the pensions authority expects to report back to the commission early next year.

The deadline for submissions to its consultation paper is October 5th.

Coverage for work

ers Mr Hayes said

Ireland should be pushing for greater pension coverage for its working population.

“In Ireland, only 41 per cent of the working population is covered by a private pension scheme,” he said.

“About 900,000 private sector workers currently have no private pension plan in place and will be looking at the contributory state pension to provide for them in retirement.”

The MEP said Ireland should be looking to countries like the Netherlands, where close to 90 per cent of the population is covered by private pension schemes, aided by mandatory participation in certain sector-wide pension schemes.

“This has led to a situation where pension assets in the Netherlands are worth about 130 per cent of GDP. In Ireland pension assets are worth just over 40 per cent of GDP,” Mr Hayes noted.