Personal pensions (also known as “private pensions”) are long-term savings products that individuals contribute to on a voluntary basis, complementing state and workplace pensions. They have a role to play in linking long-term savers with long-term investment opportunities.

Commission proposal for a regulation
on a pan-European personal pension product

In June 2017 the Commission adopted a proposal for a regulation on a pan-European personal pension product (PEPP). The proposal is accompanied by a recommendation on the tax treatment of personal pension products, including the PEPP.

PEPP will be a voluntary scheme for saving for retirement. It will be offered by a broad range of financial companies across the EU and will be available to savers as a complement to public and occupational pension systems, alongside existing national private pension schemes.

As part of the capital markets union action plan, the PEPP proposal will help channel savings towards capital markets and benefit investment and growth in the EU.

Following its formal backing by the EU permanent representatives in February 2019, on 4 April 2019 the European Parliament adopted the Commission's proposal for a regulation on PEPP.

As a next step the text will be submitted to the Council for adoption, and will enter into force 20 days after the regulation's publication in the Official Journal.

PEPP, which is to offer citizens an additional option to save for retirement, is expected to come on the market in up to two and a half years after the date of entry into application of the regulation.

Consulting stakeholders

Between July and October 2016 the Commission held a public consultation and a public hearing to explore what could be done at EU level to support a wider choice of personal pensions competing across borders. Stakeholders were invited

  • to discuss obstacles to the uptake of personal pensions products
  • provide practical suggestions to reduce these obstacles
  • give their opinion on possible EU actions in this area

The responses revealed a strong interest from both consumers and financial service providers in the introduction of a simple, transparent and cost-effective EU personal pension product.