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What Is a PEPP
PEPP stands for pan-European personal pension product. It is a uniform European pension product, supervised by national authorities and the European Insurance and Occupational Pensions Authority (EIOPA), designed to provide an old-age income alongside the state pension and national supplementary pillars. The PEPP is portable across the EU and voluntary.
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Drawing funds regularly up to a certain amount.
Gradual
drawdown
The full amount paid out at once.
Lump-sum settlements
Benefits paid at intervals over a period of time.
Annuity
Combination
The PEPP is regulated by the effective Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European Personal Pension Product (PEPP). This regulation sets out basic features such as investment rules, transparency, the right to switch, costs, and types of investment options.
Who is a PEPP for
A pan-European Personal Pension Product is an individual product that any natural person living in the EU can use to save. It is not tied to employment, so unemployed people, people on maternity leaves, or students can also become savers. It is purely voluntary; anyone can join on their own and contribute any amount.
The PEPP is a unified pension scheme across the EU, and every EU resident is entitled to it. If there is no local PEPP provider in your country, you can take out a PEPP with a provider in another EU country if it provides the option of saving under the terms and conditions of your place of residence.
Individual countries may also provide additional benefits beyond the uniform EU-wide product parameters. For instance, tax advantages such as those enjoyed by local pension schemes.
PEPP is now available in Croatia, the Czech Republic and Slovakia. Want to be the first to know when PEPP is available in your country? Sign up for the waiting list and we'll let you know when it's available!
PEPP in Your Country
Why Save in PEPP
Simplicity
Clear terms and conditions, easy decision-making, simple set-up, and worry-free saving.
Security
Mandatory risk-mitigation techniques or guarantees on invested assets.
Maximum
1 % p.a.
You will pay no more than
1 percent of assets under management on annualized fees.
Transparency
You are informed about costs, investment strategy, risks, returns and pension benefits.
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Portability
The option to remain saving with the same PEPP provider even after a change of residence to another EU country.
State pensions are a mere financial foundation, especially in uncertain times of high inflation, rising number of pensioners, and falling number of workers. As a long-term retirement savings product, PEPP is a great opportunity to take control of the size of your pension.
The PEPP also brings a form of legislative certainty, thanks to uniform ground rules. The low-cost ceiling will bring greater and pan-European competition to financial products, increasing their performance, expanding the option of choosing the right strategy according to an individual’s risk tolerance, and higher pensions.
Who Provides PEPP
Credit institutions, insurance undertakings, pension management companies, investment firms, asset management companies, or alternative fund managers can all become PEPP providers. According to an EIOPA survey, 21 entities have expressed an interest in providing PEPP.
The first company licensed to provide it is the securities broker-dealer Finax, which operates in Slovakia, Poland, Croatia, the Czech Republic, and Hungary.
Central register of PEPP providers:
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