EU ready to launch PPEP expat portable pensions

If you’re already working in Europe and can stay post-Brexit or are considering an offer by an EU member state-based company, this may be of interest.

PEPPs – Pan-European Pension Products - are aimed at expats saving for retirement, giving participants a far wider choice whilst boosting the personal pensions market known at present for its poor representation across the continent. According to an EU survey, just one out of every four workers between the ages of 25 and 59 are saving regularly to cover their retirement years. PEPPs are expected to help channel regular savings towards long-term investments.

Other benefits include increasing competition between pension providers resulting in their being able to sell their products outside their home country markets and allowing savers to have more options as regards where and how to place their retirement savings. PEPP’s regulations will mean the products will have exactly the same features no matter where in the EU they are offered. For expats, the main advantage will be that they can move their portable PEPP to other EU countries is necessary.

In addition, pension savers will have the freedom to switch providers, both across borders and domestically following a minimum of five years from either a previous switch or the end of a contract. Fees charged for this service will be capped. Providers will also benefit from easier investment processes, especially if an investment is in an EU project. PEPPs are the solution to the fragmented personal pension market in the EU which came about via a patchwork of rules impeding EU-level market development. Several EU member states have virtually no personal pension markets, and it’s hoped PEPPs will change this.