Difficulty
As of now pension savings make up the largest proportion of Europeans’ financial assets currently standing at over 6 trillion euros. This, however, doesn’t mean that they are invested productively, unfortunately, quite the contrary.
A large proportion of these assets is still invested in conservative and costly instruments of local voluntary pension schemes that strip the savers off potential returns instead of navigating them towards a comfortable retirement.
Pan-European Personal Pension Product (PEPP) was supposed to be an answer to this issue from the side of the European Commission. Instead, despite being a great idea, its implementation was and still is marked by challenges, most notably the one that is a common factor in many EU initiatives: Bureaucracy.
At Finax we believe that, despite the current flaws, the product itself has huge potential to improve and become an actual gamechanger in the European asset management market.
That’s why we, as the first and, for the time being the only provider of the European Pension, are more than pleased with the recent EU initiative to revise PEPP’s implementation strategy.
Secure a comfortable future and take advantage of the European pension benefits
Since we are the only company that has had actual hands-on experience with its provision and promotion, we decided to complement the initiative with our own proposals regarding several key areas, for example:
- Easier investing in European equity
- Lower restrictions for employers
- Tax treatment alignment with local pension products
- Marketing and distribution simplification
And this is just the tip of the iceberg.
With the upcoming release of new regulatory proposals for PEPP, the European Commission has the opportunity to address these issues, and we are more than ready to offer a helping hand.
After all, the opinion paper that you may find attached here serves as a manifestation of our willingness to engage in issues concerning the public, as improving the financial literacy and well-being of the general population remain as our core objectives.
Be sure to read it to get a more in-depth view of the current issues and our proposals to fix them. Thank you for taking interest in the future of Europeans’ savings!
