A new version of the Finax app is out and with it a long-awaited function of account sharing. This m...
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How to Build a Brighter Pension Future for Europe?
Pensions are a hot topic for the media, politicians, and the public—and with good reason. Everyone retires eventually. But just because pensions matter doesn’t mean the system works smoothly. In this post, we’ll explore the European Commission’s latest initiative to revise the strategy for the pan-European Personal Pension Product (PEPP).
Currently, pension savings represent the largest portion of Europeans' financial assets, totaling over 6 trillion euros. Unfortunately, this does not imply that these assets are being invested productively. A significant portion of these savings is still tied up in conservative and costly local voluntary pension schemes, which deprive savers of potential returns and hinder their journey toward a comfortable retirement.
The Pan-European Personal Pension Product (PEPP), introduced by the European Commission, was intended to address this issue. However, despite its promise, its implementation has faced numerous challenges, primarily due to bureaucracy – a common issue for many EU initiatives.
At Finax, we believe that, despite its current shortcomings, the product holds immense potential to improve and become a significant force in the European asset management market. That’s why we’re proud to have been the first provider of the European Pension in the EU. We welcome the recent EU initiative to revise PEPP’s implementation strategy.
As one of the only two companies with hands-on experience in providing and promoting this product, we have decided to complement the initiative with our own proposals in several key areas, including:
- Easier investing in European equity
- Fewer restrictions for employers
- Alignment of tax treatment with local pension products
- Simplification of marketing and distribution
And this is just the beginning.
With the anticipated release of new regulatory proposals for PEPP, the European Commission has the chance to tackle these issues, and we are more than ready to lend our support.
We’ve summarized our experience with providing PEPP and proposals to improve its regulation in an own-initiative opinion paper. This reflects our commitment to addressing public concerns, as improving financial literacy and the well-being of the general population remains one of our core goals. You can access the paper via the button below.
We’d be honored if you read it and helped us spread the word by sharing it—so it reaches the media and beyond. Thank you for your interest in the future of savings for Europeans!
Warning: Investing involves risk. Past returns are not a guarantee of future performance. Tax exemptions apply exclusively to residents of the respective country and may vary depending on specific tax laws. Check out our ongoing and ended promotions.
