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‘The Personal European Pension Plan stimulates pension savings across Europe’
The product will be based on a DC structure with regular premium contributions and no benefit guarantees. It will be as simple and accessible as possible. The EU will set rules for proper consumer protection via standardized requirements for a range of aspects including the investment strategy, member communication and also ensure the long-term nature of the savings by discouraging premature withdrawal and spending. These PEPP products will have an EU ‘stamp’, to show consumers that the savings plan adheres to EU standards and is portable throughout the EU.
Unlike the IORP, the PEPP is not yet available. It is still being developed by a close cooperation of public and private stakeholders. EIOPA, the European pensions authority is playing a leading role. The various industry bodies, varying from financial institutions, multinationals and trade unions to consumer protection groups, strongly support the initiative. Some local member states are still reluctant perhaps because they fear interference with existing local pension solutions and local vested interests. Recently, the European Commission and Parliament have started endorsing the plans. They have carried out a broad market survey in 2016 to collect more precise input on market needs and to establish even broader awareness and support.
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