On 13 February 2019, a new ‘pan-European pension product’ (PEPP) moved a step closer as EU ambassadors endorsed the agreement on a proposed PEPP reached between EU institutions late last year. As a new class of personal pension scheme, it is intended to provide greater choice for consumers saving for retirement and to boost the market for personal pensions
PEPPs will complement state-based, occupational and national personal pension schemes. They will have the same standard features wherever they are sold and will be offered by a broad range of providers, principally insurance companies, banks, occupational pension funds, investment firms and asset managers
The proposals have to be formally adopted by the European Parliament and the Council before they can enter into force. However, the outcome of Brexit may well affect the relevance of the new product from a UK perspective.