There is an “urgent need” to strengthen supplementary pension schemes and tackle the declining adequacy of statutory pensions, according to speakers at a conference held at the European Parliament.

The event, Mind the Pension Gap: Delivering Adequate, Inclusive & Portable Pensions in the Current EU Cycle, was convened by BETTER FINANCE and the CFA Institute, and hosted by MEP, Stéphanie Yon-Courtin.

It brought together EU institutions, supervisors and pension industry stakeholders to examine how Europe can secure sustainable retirement incomes amid mounting demographic and fiscal pressures.

In keynote remarks, Yon-Courtin warned that statutory pension systems “can no longer guarantee a full and decent retirement for every citizen”, stressing that making three-pillar systems work - particularly the second and third pillars - must be a priority for the current EU cycle.

European Insurance and Occupational Pensions Authority (EIOPA) head of consumer protection, Valerie Mariatte-Wood, echoed the call for reform, cautioning that Europe’s “ageing population and shrinking workforce demand urgent action” and that no policy shift will succeed without rebuilding trust in pension products.

Meanwhile, a panel discussion with representatives from the Centre for European Studies (CEPS), APG, the CFA Institute and the European Commission identified adequacy, savings mobilisation and inclusiveness as central challenges.

Panellists agreed that supplementary pensions must deliver real long-term value and highlighted persistent problems of high fees, low returns and limited portability.

They reiterated that pension assets must be managed strictly in the best interests of savers.

Speakers also emphasised the need to mobilise Europe’s substantial household savings into simpler, safer long-term investment products that enable citizens to participate more effectively in capital markets without being exposed to undue risk.

Expanding coverage emerged as another pressing issue, with large groups, including low-income earners, women, mobile workers and those in non-standard employment, still missing out on occupational and personal pensions.

Automatic enrolment, lower-cost and simpler personal pension products, and improvements to the Pan-European Personal Pension Product (PEPP) were all cited as potential solutions.

CFA Institute director, Alexander Lehmann, warned that “we should not view supplementary pensions as a silver bullet,” stressing the need for long-term savings habits, financial literacy and products that are simple, predictable and offer clear liquidity options.

Adding to this, CEPS and European Credit Research Institute (ECRI) associate senior research fellow, Judith Arnal, welcomed recent commission proposals but stressed that supplementary pension development remains primarily a member-state responsibility.

She noted that successful systems in Denmark, Sweden and the Netherlands have benefitted from auto-enrolment or quasi-mandatory schemes backed by social partners.

APG head of international public affairs, Johan Barnard, also emphasised the need for long-term cooperation and governance structures insulated from “short-term political cycles”, while the European Commission head of insurance and pensions, Tilman Lueder, highlighted the role of the "prudent person principle" in ensuring well-governed, diversified schemes that deliver better long-term returns.

Closing the event, BETTER FINANCE managing director, Aleksandra Mączyńska, called for coordinated EU and national reforms to ensure supplementary pensions become both adequate and accessible.

She warned that too many existing products remain costly and deliver poor returns, pointing to findings from BETTER FINANCE’s annual research.

“Europeans urgently need simple, good-quality, and cost-efficient pension products,” she said, urging member states to adopt “bold, pro-consumer solutions”, including auto-enrolment into well-performing schemes and ensuring a level playing field for PEPP.

The conference concluded with a clear message: as Europe grapples with demographic change and pressure on statutory systems, strengthening supplementary pensions will be vital to delivering dignified retirement incomes for future generations.

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