Retirement benefit for your employees
Build your financial future with peace in mind and clarity. Finax invests for you so you can enjoy what you love.
What is the European Pension?
The Pan-European Personal Pension Product (PEPP) is a voluntary retirement savings product based on EU regulations. It offers strong competition to local supplemental retirement savings and is available in Germany as well as in Slovakia. It is simple, modern, affordable, and has higher expected returns. A key feature is its portability when changing residence within the EU.
No extra costs
The introduction of the European Pension/PEPP does not require additional costs or complicated administration. It saves you time and money.
Tax savings
Contributions of up to €500 per year as a non-monetary benefit are not subject to deductions or taxation. In addition, savers can reduce their tax base by up to €180 per year.
For small and large companies
PEPP is suitable for companies of all sizes, allowing employers to offer high-quality pension provision to their employees regardless of size.
Popular employee benefit
Hundreds of employers contribute to their employees' European pension, reducing turnover and increasing engagement and loyalty. For employers, contributions up to €500 per year as a non-cash benefit are exempt from taxes and social charges.
- Employer contributions
- Larger employee pension
- Easy implementation
"We were the first employer in Europe to introduce the European pension benefit from Finax. The product effectively grows contributions, enabling us to help employees secure their retirement. It is also very simple, clear, and understandable for our employees. We are very satisfied with it."
Monika Vizváryová
Finance Department
"We offer the European pension to our employees as a benefit that motivates them to think about their retirement future. We chose Finax for their approach to money growth, as we consider passive investing the most beneficial for long-term savings. We also believe that with PEPP and Finax's blogs, our employees will better understand their finances, and many have already used other Finax products."
Tomáš Gazda
Chief Execution Officer
European pension vs. 3rd pillar
The same cost for your company, a bigger pension for your employees.
PEPP's standardized rules ensure product consistency in areas such as transparency, investment rules, and transfer rights. The savings and payout terms are determined by the laws of individual countries. European oversight protects the product from interference by local governments. More information on the comparison can be found here
| European Pension | 3rd Pillar | |
|---|---|---|
|
Fees
|
Low
|
High
|
|
Risk
|
Automatically reduced
|
Mostly conservative
|
|
Pension payout
|
Gradual with appreciation
|
Varies with low return
|
|
User comfort
|
Online, the same across the EU
|
Partial transparency
|
|
Portability
|
Within the EU
|
Within the Slovak Republic
|
|
Education
|
Blogs, podcasts, videos
|
None
|
|
Legislation
|
Under EU control
|
Slovak
|
150+ employers
10 000+ savers
128 € average contribution
50+ million euros under management
Frequently asked questions
- PEPP stands for Pan-European Personal Pension Product.
- It was created as the EU's response to member states' inaction on retirement issues and the challenges of Europe's aging population. Its goal is to offer a single product for all member states, establish uniform rules, and facilitate cross-border mobility and work opportunities. The EU also aims to foster competition against overpriced, outdated supplemental retirement schemes, ultimately benefiting savers.
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- Complete the document for Contract Proposal Data, available for download here
- Based on the questionnaire, we will create an Employer Agreement for you
- If you would like to review the contract in advance, contact us at business@finax.eu
- provide an original excerpt from the Commercial Register, which must be no older than three months.
- then you can then make contributions to employees at your preferred frequency - one payment and one report for all employees (we will provide the exact format).
- The minimum number to introduce PEPP in a company is one employee.
- A product with enormous potential across Europe that aligns with the philosophy of the Finax company. Generally, private pension systems across Europe are very rigid, lacking innovation and facing significant entry barriers that reduce the necessary competition. Most pension systems are decades old. During this time, the financial sector has advanced, but pension savings have not reflected these changes. Pensions are the most pressing issue for the aging European population. Therefore, innovation and liberalization of pension markets are urgently needed to secure our future. PEPP has a strong premise to bring new modern and innovative players to the pension markets. Finax's main goal is to revitalize pension markets so that, in the end, primarily savers benefit in the form of larger pensions, savings flexibility, lower costs, and transparency.
- Yes. The law does not restrict the saver to using only one type of pension savings. The same applies to the employer. The reduction of the tax base for contributions made by the saver to PEPP or the 3rd pillar is only possible up to a maximum of 180 euros per year in total, not for each product. If savers have a 3rd pillar contract concluded before December 31, 2013, without changes to the participation plan, they cannot benefit from the mentioned tax base reduction.
- No. On the contrary, PEPP is cheaper than the Slovak 3rd pillar. European regulations set a maximum annual fee of 1% of the average assets of the saver. Finax has gone further and charges only one management fee of 0.6% per annum + VAT (0.74% annually) in the European pension plan. The costs of the 3rd pillar are limited by Slovak legislation, currently imposing a management fee of 1% per year on the fund's assets and a performance fee of 10%. Additionally, one must consider costs for custodians, transactions, auditors, and other legally permitted expenses in 3rd pillar funds.
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If you decide to move and work in another country, you have several options. You can continue contributing to your original account or open a sub-account in the country you are moving to. It also depends on the offerings of your PEPP provider. You can also transfer your savings to another provider. Answers to 13 questions regarding the portability of PEPP can be found in this article.