The pension gap and value for money (VfM) have been identified as high-materiality consumer risks in Europe’s pensions market, the European Insurance and Occupational Pensions Authority’s (EIOPA) heatmap on consumer trends in insurance and pensions has revealed.

Providing analysis, EIOPA stated that the pension gap, which was placed the highest in terms of materiality and negative impact, remains a “pressing concern” in several member states, with 7 per cent of EU consumers unaware that personal pension products exist.

Most positively, however, it said the number of EU consumers with an occupational or private personal pension compared to last year has increased from 38 per cent to 40 per cent.

Moreover, financial confidence in retirement among EU consumers has improved, with 49 per cent confident in the 2025 survey compared to 42 per cent in 2024.

In terms of the outlook, the authority described its risk as ‘stable’ – in that it remains a concern, but increasing pension coverage and improved financial confidence among consumers suggest a stable outlook.

On VfM, EIOPA has seen “notable improvements” over the past year in the pensions sector, as costs and charges associated with pension funds have decreased over time, making them more attractive and cost-effective for consumers, EIOPA said.

On the outlook for VfM, the authority said the risk is decreasing due to the improvements beginning to be observed as a result of “sustained supervisory initiatives”.

“Nevertheless, certain concerns persist, and new risks are emerging, which necessitate ongoing monitoring and attention,” it said.

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