Pension tracking is high up the political agenda towards a new mandate for the European Commission. The Eurogroup of EU Ministers of Finance has made it a priority, stating: “Member States are invited to develop pension tracking systems to provide citizens with an overview of their future retirement income, where needed, based on input from the European Commission.”
The statement was made in the context of a plea to further integrate European capital markets. Well-functioning capital markets might allow European citizens to benefit from more attractive investment opportunities that are seen as a means to help complement their future pension income. The Eurogroup statement was endorsed by the heads of state of the EU Member States in the European Council.
In principle pension trackers can serve as a tool for citizens to improve their financial literacy. By compiling the users’ different pension entitlements, they contribute to better understand the personal situation regarding the expected income in the old ages. Several political actors have made the subject into a priority for the coming years. The European Council wants to “strengthen financial literacy of citizens”. Former Italian prime minister Enrico Letta advices to accompany capital market policies with strengthening financial literacy.
In European Parliament, the European People’s Party - the biggest party – in its manifesto states “empowering people so that they are confident in managing their personal finances is key. We want to ensure a focus on financial literacy, in a digital era, to strengthen our families and our society.” The Socialists & Democrats – the second biggest party - gives attention to an ‘inclusive digital transformation’. From that perspective, tracking services can give insights into pension gaps, which the S&D wants to close by 2030, according to its manifesto. These political priorities will be important towards the creating of a new European Commission Work Programme following the European elections.
The ETS is committed to support the development of pension trackers and share good practices on pension communication. With the ETS Forum on Pension Communication as well as in bilateral meetings with stakeholders from countries that are considering or are about to establish PTS we are willing to contribute to the establishment of more national PTS to be connected to the ETS in the future.