The European personal pension plan product (PEPP) Regulation will offer consumers a new pan-European option to save for retirement.  It forms part of the Capital Markets Action plan which identified low levels of provision for retirement accompanied by an unprecedented demographic challenge which will increase pressure on public finances.

What is the PEPP?

The PEPP is a voluntary personal pension scheme which is designed to give individuals more choice when they are saving for retirement.  The Commission hopes that it will be offered by a broad range of financial services companies and it will be complimentary to any other pension arrangements.

The PEPP Regulation sets out standards for:

  • Core product features;
  • Transparency requirements;
  • Investment rules; and
  • Switching and portability rules.

The product will allow savers to switch product providers at a capped cost every five years and will be portable between member states.  The product will provide consumer protection on the essential features , such as a default investment option, but will also provide flexibility to product providers to tailor the product to fit with their business model.


The PEPP Regulation is expected to come into effect in mid-2019.  Most recently the Council of the EU has published its final compromise text and invited COREPER to begin negotiating with the European Parliament.  The UK is also keeping an eye on developments through the House of Commons European Scrutiny Committee.

European personal pension plan product (PEPP) updates from February:

Council of EU agrees position on proposed PEPP Regulation Press release 13.02.19

European personal pension plan product (PEPP) updates from September:

ECON report published setting out proposed amendments Report 06.09.18
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