Introduction on pensions

Occupational pensions are pension schemes tied to employment contracts. They supplement public pensions in order to increase the amount of workers’ pension and to protect them from old-age poverty. Their development is closely linked to the ageing of the EU population, the situation regarding national budgets and the increasing pressure on social security systems. Personal pensions (also known as ‘private pensions’) are long-term savings products to which individuals contribute on a voluntary basis, complementing public and occupational pensions. Occupational and personal pensions have traditionally been dealt with by Member States only. The EU legislator has, however, made the decision to regulate these pension schemes in order to promote their development in the EU while ensuring a high level of protection and security for their members and beneficiaries.