The outlook for European citizens saving money for their pensions is far from encouraging. Although lower inflation rates across the EU slightly improved real returns, current low interest rates (lower still following the latest ECB cut down to 0,05%) combined with heavy fees render pension savings markets extremely vulnerable to even the slightest increase in inflation.
A new report on the gloomy status of private pensions in Europe was released today by BETTER FINANCE. The 2014 Edition of «Pension Savings: The Real Return» now covers 8 EU countries (Belgium, Denmark, France, Germany, Italy, Poland, Spain and the United Kingdom), representing 75% of the entire EU population.
The report clearly illustrates that the tendency to blame poor returns on the performance of capital markets holds no water. Pension funds too often underperform capital markets.
Whereas the European Authorities rightly identified the promotion of long term investment as a priority for growth and jobs, their current policies with regard to long term and pension savings to this day remain inconsistent with this priority.
Please read here the full press release. Please find also its German and French versions here and here.