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 cheap investment savings plan for retirement under EU rules. This pension product is valid in Ireland and Poland and can be contributed to by you or your employer. Tax advantages may be aplicable after all conditions are met.
Full control
PEPP offers flexibility in shaping your contributions and investment strategy, allowing you to maintain control over how your savings are built and managed over time.
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
Your total annual cost with Finax PEPP is 0.9%. This includes the 0.6% management fee, VAT (0.14%), and underlying ETF costs (0.16–0.22%) already part of ETF price. There are no early exit or withdrawal fees.
Download the PEPP price list
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 Ireland, such as Personal Retirement Savings Accounts (PRSAs) 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 Irish tax system and long term investment support, PEPP allows you to invest more of your gross income compared to standard savings products, leading to a higher value of future retirement funds.
Safety & 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
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European Pension Under the Microscope
Under current Irish rules, benefits from a PEPP may generally be accessed from age 60. When benefits are first taken, up to 25% of the fund may be available as a retirement lump sum, which may qualify for favorable tax treatment. The remaining balance may be used to purchase an annuity, taken as taxable cash, transferred to an ARF where eligible, or remain invested in the PEPP and drawn down over time. Benefits must generally be taken no later than age 75.
Tax treatment of contributions
Contributions to a PEPP may qualify for Irish income tax relief on relevant earnings, subject to age-related percentage limits and the €115,000 earnings cap. PRSI and USC relief do not apply. The availability and value of any tax relief will depend on the individual’s personal circumstances and may change in the future.
Death benefits
If the PEPP holder dies before taking benefits, the fund will generally form part of the estate. In such cases, no income tax may apply, although Capital Acquisitions Tax rules may apply depending on the beneficiary’s circumstances. If death occurs after benefits have started, the tax treatment will generally be similar to that applying to an ARF. Further details on the 100/60 and 80/60 strategies are set out in the PEPP Key Information Document.
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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 in Ireland 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 Revenue 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 relevant guidance issued by the Irish Revenue Commissioners.
Employer contributions
PEPP is designed as a pan-European personal pension product that allows savers to continue building retirement savings when moving between EU Member States.
If you move to another EU Member State, you may have the option to open a new PEPP sub-account in the country where you are residing, either with the same provider (if it operates in that country) or with another PEPP provider. Opening a local PEPP sub-account in another EU country may require that you reside temporary or permanently in that jurisdiction.
If permitted under the applicable rules, you may continue contributing to your existing sub-account even after moving to another EU Member State.
In some EU countries, national legislation may allow transfers between PEPP and certain domestic pension products. The availability of such transfers depends on the rules applicable in the relevant Member State and may not be available in all jurisdictions.
The tax treatment of PEPP contributions, transfers and withdrawals depends on the rules applicable in the relevant EU Member State and the individual’s personal circumstances. Tax legislation and practice may change in the future. Access to PEPP sub-accounts in other Member States depends on whether the PEPP provider offers services in those jurisdictions
Taxation
Contributions to a PEPP may qualify for income tax relief in Ireland, subject to the conditions set out in Irish tax legislation and guidance issued by the Revenue Commissioners. Relief may be available on personal contributions at the individual’s marginal rate of income tax, subject to the applicable age-related percentage limits and an annual earnings cap of €115,000. PRSI and USC relief do not apply.
When retirement benefits are taken, withdrawals (other than any permitted retirement lump sum) are generally treated as taxable income and may be subject to PAYE, with tax deducted at source in accordance with Irish 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.
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 Irish pension products (such as PRSAs), and alternative investment approaches can be found in our educational materials this blog.
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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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