Leading the development of innovative cross-border savings and pension products

Europe is facing ageing populations as people are getting older and birth-rates are on the decline. This is placing an increasing strain on public pension systems throughout the EU. Although no two systems are alike, a well-rounded multi-pillar pension approach is of paramount importance if fu-ture EU citizens are to have sufficient income after retirement. Pension products inherently have a (very) long investment horizon and can span up to 40 years. Combining the long-term nature of these investments with sustainable (ESG) characteristics will further increase the attractiveness of these products as investors pursue environmental or societal objectives in addition to financial re-turns.

The Pan-European Personal Pension product (PEPP) complements existing retirement provisions in the EU. It will complement national pension systems and has the potential to become the next UCITS: a recognised brand in the investment world. ALFI will work to develop new Luxembourg PEPPs that will be available for sale in Luxembourg and throughout Europe, including ESG-labelled pension products. Therefore, a new ESG label tailored to pension products will also be considered.

In terms of fund industry infrastructure, ALFI supports the development of digital solutions for cross-border pension servicing, and contributes towards building an ecosystem and talent pool for international pension service providers.
Our ambition is to help savers understand their long-term saving needs, and show the crucial role that investment funds can play in meeting them. Luxembourg UCITS and alternative investment funds (AIFs) are solid building blocks for pension funds, and ALFI continues to share knowledge of how successful strategies work in practice.

Read more about ALFI Ambition 2025.