The pan-European personal pension product (PEPP) is a voluntary personal pension scheme that will offer consumers a new pan-European option to save for retirement.
This new type of product is designed to give savers more choice and provide them with more competitive products, while enjoying strong consumer protection. It could be offered by a broad range of financial providers such as insurance companies, asset managers, banks, certain investment firms and certain occupational pension funds.
The Regulation on the PEPP establishes the legal foundation for a pan-European personal pension market, by ensuring standardisation of the core product features, such as: transparency requirements, investment rules, switching right and type of investment options. It will ensure sufficient consumer protection while at the same time being flexible enough to enable different providers to tailor products to suit their business model.
PEPP aims to help addressing demographic challenges due to the aging of the population and close the pensions’ gap in the EU. Currently, only 27% of Europeans between 25 and 59 years old have enrolled themselves in a pension product. PEPP will offer to all EU citizens an additional opportunity to save for their retirement.
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