Behavioural study on the pan-European Personal Pension Product (PEPP) information documents
The overall purpose of the study is to facilitate and execute graphic design work and consumer testing regarding the pan-European Personal Pension Product (PEPP) Key Information Document (KID) and Benefit Statement (BS) in three Member States. We will use mix behavioural methods to understand relevant behavioural biases, and why consumers find certain aspects of information related to pension products difficult to understand, and how to overcome those difficulties.
The outcome of the consumer testing shall help the European Insurance Occupational Pensions Authority (EIOPA) with its policy decision on the comprehensibility of the information to be included in the PEPP KID and PEPP BS and the presentation of this information, which inter alia fits the digital environment. According to the Regulation 2019/1238 on a pan-European Personal Pension Product (hereafter the “PEPP Regulation”), which entered into force in August 2019, EIOPA is responsible of carrying out consumer testing of the PEPP KID and PEPP BS in order to scrutinise different factors that affect consumers’ behaviour and decision-making and finally select the best format of such documents based on experimental evidence.
This study includes the first phase of design work and consultation with EIOPA to develop a number of different formats of PEPP KID and BS, which will be tested using both qualitative and quantitative methods. First, focus groups will be conducted to discuss in depth the mock-ups and understand the most relevant behavioural biases that consumers have when facing a pension product. Then online experiments will test the different formats and the results will indicate the most robust, clear and reliable solution to be applied across all EU28 MS plus Norway, Iceland and Liechtenstein and should help EIOPA to form an opinion on the best format to propose for use on a pan-European basis.