European Pension
Secure a good pension regardless of where your career takes you.
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What is a European Pension (Pepp)?
A pan-European Personal Pension Product, known as PEPP, is a simple and cheap investment savings plan for retirement under EU rules. This pension product is equally valid in Germany and Slovakia and can be contributed to by you or your employer, regardless of which country you work in.
Retirement savings
Uniform EU rules
Investing in ETFs
Employer contributions
Fee of only 0.6% p.a.
Tax-advantaged
Who is the European Pension suitable for?
Anyone who cares about their future and seeks a well-lived retirement. The European Pension is particularly interesting for people who plan to spend their careers outside Slovakia, freelancers, self-employed, and employees of multinational corporations or companies preferring PEPP to local pension pillars (e.g., 3rd pillar). The PEPP is not tied to employment status, it is individual and available to each person living in the European Union. With few exceptions, savings from the PEPP cannot be drawn before retirement age. Read more in our blog.
Easy Transfer
One pension everywhere
Save for your pension no matter which EU country you currently work in. You'll start investing dynamically, and we'll automatically reduce your investment risk in the period before retirement. After retiring, you'll get the amount you've saved in a lump sum or by phased drawdown each month, subject to certain conditions.
A Higher Pension
Thanks to Finax portfolios
Secure a higher pension by investing in stocks of the largest and most successful companies and bonds from around the world via index ETFs. Take advantage of Finax's intelligent investing combined with the benefits and rules of a European pension. You'll conclude the contract entirely online, and your saving progress will always be available for a check via a smartphone.
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Low Costs
Only 0.6% + VAT p.a.
We've kept charges to a minimum, well below the limits of the pan-European Personal Pension Product (PEPP). The European Pension by Finax costs only 0.6% per year + VAT. You pay no other fees to Finax, enabling your pension savings to grow faster.
Increased security
Finax reduces risk with a properly allocated portfolio, broad ETF diversification, and automated rebalancing. The European Pension adds an extra element of risk mitigation - a lifecycle strategy. 10 years before retirement, a part of the portfolio is gradually shifted into conservative bonds. This way, your wealth gets less vulnerable to stock market fluctuations while its value continues to grow, even in the payout phase of your pension.
PEPP removes local political risks, such as government intervention in the 2nd pillar and 3rd pillar. It brings uniform conditions across the EU. Providers are under the control of national regulators and the European Insurance and Occupational Pensions Authority (EIOPA). Investing always involves risk associated with the development of the financial markets. For details on the risk undertaken when investing, see this blog.
3rd Pillar VS. European Pension
Uniform European PEPP rules ensure standardization of basic product features such as transparency requirements, investment rules, right to switch, and type of investment options. National legislation determines the conditions for savings and payouts. The European oversight of the product prevents it from being canceled, restricted on portability, or priced excessively at the initiative of national governments. You can find more information regarding the comparison here.
European Pension Under the Microscope
European pension benefits are taxable. A drawdown of PEPP savings is possible at retirement age and Finax provides two options: a lump sum and a phased drawdown (annuity). The saver's contributions up to a maximum of €180 reduce the tax base. The wealth in the PEPP can be inherited. Take a look at the PEPP key information document for the 100/60 or 80/60 strategy, which is guaranteed to answer most of your questions.
European Pension as an Employee Benefit?
A PEPP is an attractive form of employee benefit for all responsible employers who care about their employees' future. It is an alternative to the 3rd pillar thanks to its lower costs, more attractive payout phase, European framework, potential returns, and legislative certainty. Combined with its flexibility and simplicity, it will charm every employee.
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Enjoy a European pension
with a reliable digital asset manager and the first PEPP provider in Europe.
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DO YOU HAVE FURTHER QUESTIONS?
Opening an account with Finax is simple and fully online. Just click on "Let's start" in the top menu bar. From there, you will be taken to the registration page where you can choose your investment goal and answer a few questions about your investment preferences and risk profile. Based on your answers, we'll select a suitable investment strategy for you. Next, you'll create your online access, verify your identity using biometrics, provide personal information, confirm your contact details, and sign the portfolio management agreement online. Once you've completed these steps, nothing will hold you back from effectively growing your wealth. More information.
Finax was established by Juraj Hrbatý, a seasoned financier with 16 years of experience, and Radoslav Kasík, who brings 9 years of experience as a portfolio manager. The company's management team also includes Ján Jursa, Ján Tonka, Michal Vaculik, and Juraj Šnirc, each with extensive backgrounds in various departments of banks, securities traders, and asset management companies. More information about the Finax team.
Finax charges a portfolio management fee of 1% per annum plus VAT, calculated based on the average account value throughout the year and deducted monthly. If the volume of the client's assets managed by Finax reaches at least 100,000 euros, this fee will be reduced to 0.85% per annum plus VAT. For further details on Finax service fees, please refer to our Price List.
Check the ongoing promotions to obtain an even higher discount.
At Finax, we provide various discounts to make your investments with us even more profitable. Alongside regular special offers, we offer several permanent discounts that allow you to exempt a part of your assets from the portfolio management fee: discount for inviting a friend and for transferring investments to Finax from competitors.
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The longer the investment horizon, the more PEPP can contribute to income in retirement. It also grants the option to start saving to persons who are not involved in state or employee pension schemes.
See a comparison of modeled results of the European Pension and the 3rd pillar in our blog.
However, the conditions of the savings and payout phases may be subject to changes at the national level.
