European Pension – a modern solution for your future
Invest in a pension that is affordable, flexible, and portable throughout the entire EU. The ideal solution for those who think ahead.
What is a European Pension (PEPP)?
A Pan-European Personal Pension Product, known as PEPP, is a simple and low-cost investment savings plan for retirement under EU rules. This pension product works the same way in Germany as it does in Slovakia, and you or your employer can contribute to it regardless of the country in which you work. You can save calmly and comfortably, with one clear solution across Europe.
Full control
Unlike the 2nd or 3rd pillar, the state has far less power to cap your contributions or change your strategy. You have control over your savings. t
Simplicity and clarity
PEPP is designed to be understandable even for laypeople - clear rules, easy offer comparison, and online account management without unnecessary bureaucracy.
Low fees
When saving in PEPP, you pay a reduced fee of only 0.6% per year + VAT. The total cost for the basic PEPP is 0.9% – of which 0.6% is Finax’s revenue, 0.14% VAT (charged together as a fee), and 0.16–0.22% are internal ETF fees already included in their price.
How to start investing?
Complete a short questionnaire and set a strategy that fits you.
Sign up and sign the contract online.
Set up a standing order for payments and make your first deposit.
Track everything via the app and monitor your deposits.
Who is the European Pension suitable for?
The Pan-European Personal Pension Product (PEPP) is a voluntary personal retirement savings product designed to help individuals build long-term retirement savings. It may be particularly suitable for individuals who expect to live or work in different European countries during their careers, including freelancers, self-employed professionals and employees of multinational organizations. PEPP may also be considered by individuals who wish to complement existing retirement arrangements available in their country (such as local personal or occupational pension schemes) with an additional long-term savings option that can be maintained when moving between EU Member States
PEPP is a personal pension product and is not linked to a specific employer. It is available to individuals residing in any Member State of the European Union. Contributions made to a PEPP are intended to support long-term retirement savings and, in general, the accumulated savings can be accessed only upon reaching the applicable retirement age, in accordance with the relevant rules governing PEPP.
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Michał Szafrański
Author and financial blogger
I take care of my pension myself - via European Pension from Finax, with low fees and tax benefits.
Show accountAdvantages of the European Pension
Easy Transfer
Save for your retirement anywhere in the EU. If you decide to move do a different member state throughout life, you make take your savings with you.
A Higher Pension
Thanks to lower fees and a better-designed payout phase, PEPP will most likely provide you with a higher pension than the 3rd pillar.
Security
Ten years before reaching retirement age, we start gradually reducing your risk in PEPP to protect your planned retirement from potential market downturns.
Retirement is one of the biggest investment goals
Learn more about retirement investing
European Pension Under the Microscope
European pension benefits are taxable. 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.
Do you want to explore the dephts of the European pension?
Investment savings lifecycle
In PEPP investing, the investment risk starts to decrease gradually 10 years before retirement age. The goal is to reduce the chance of sharp declines in the value of your savings just before you start withdrawing income from them.
This gradual shift will reduce portfolio value fluctuations as you approach retirement. The stock portion will gradually decrease to 60% (with the remaining 40% in bonds) by retirement age. The portfolio will maintain this allocation during retirement so that your savings continue to grow, allowing you to draw a higher overall pension.
Documents with detailed information
Every PEPP provider is required by regulation to publish a Key Information Document (KID) about their product. You will find answers to most questions you may have about this pension scheme in it.
You can find the KID for the basic 100/60 strategy here.
The KID for the alternative 80/60 strategy is available here.
These documents answer most questions you may have about the product. They explain how savings are invested, whether guarantees are provided, and what happens if you die during accumulation or move to another country.
Employee benefit
In addition to personal contributions, an employer may choose to contribute to an employee’s PEPP as part of an overall remuneration and benefits package. Pension contributions are commonly used by employers across Europe as a long-term employee benefit supporting retirement savings.
The tax treatment of employer contributions may depend on the employee’s individual circumstances and applicable national rules. Where contributions exceed relevant limits or conditions, additional tax charges may arise.
Employers may choose to offer contributions to a PEPP as part of their employee benefits program. Employees who are interested in exploring whether their employer may support contributions to their PEPP should discuss this option with their employer.
Further information on applicable tax treatment and limits can be found in the guidance issued by the tax authority in your country of residence.
Portability
PEPP is designed as a pan-European personal pension product that allows savers to continue building retirement savings when moving between EU Member States.
To open a sub-account in any EU country, you must have registered permanent or temporary residence there. Transferring savings when moving is not mandatory; you may continue contributing to your original country’s sub-account.
Some countries allow transfers between PEPP and local 3rd pillar products (e.g., Poland, the Netherlands, France), but this option is not yet available in other European countries.
Taxation
Contributions to a PEPP may qualify for income tax relief, subject to the conditions set out in the tax legislation and guidance of your country of residence. Relief may be available on personal contributions, often up to age-related percentage limits and an annual earnings cap that vary by country. Some taxes and social contributions may not qualify for relief. Please check the specific rules that apply in your country of tax residence.
When retirement benefits are taken, withdrawals (other than any permitted retirement lump sum) are generally treated as taxable income and may have tax deducted at source, in accordance with your national tax rules.
The tax treatment of pensions differs from investing outside a pension structure. For example, investments held directly in ETFs may be subject to capital gains tax or other applicable tax rules, depending on the structure of the investment and the applicable legislation in your country.
The availability and value of tax relief and the taxation of benefits depend on an individual’s personal circumstances and may change in the future.
Further information about PEPP, other local pension products, and alternative investment approaches can be found in our educational materials this blog.
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Read more about the European Pension PEPP
Introducing the European Pension (PEPP)
Finax has achieved a significant victory of European scope. We became the first-ever entity in Europe to be authorized to provide a pan-European personal pension product, making Slovaks the first EU citizens to be able to open this new voluntary pension product.
Open doors for PEPP with your employer and get a discount!
Do you want to get access to the European Pension (PEPP) not just for yourself but for your colleagues too, while enjoying the benefits that this product offers? We have a special offer for you that will help you prepare for retirement efficiently while also obtaining lucrative discounts!
Got questions?
Finax offers several discounts that can make your investing with us even more beneficial. We regularly bring special offers to our clients and, in addition, provide long‑term discounts that allow you to have part of your assets managed without a portfolio management fee: a discount for inviting a friend or for transferring your investments to Finax from another provider.
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