Pan-European personal pension product (PEPP)

What the EU is doing and why

With the EU populations ageing, it is increasingly important to foster opportunities that enable citizens to achieve more adequate and diversified retirement income. Supplementary pensions – occupational and personal pension schemes – play an important role by adding to public pensions. Therefore, the role of supplementary pensions has been growing.

However, but in some Member States, the supplementary pension sector remains underdeveloped. According to the European Insurance and Occupational Pensions Authority (EIOPA), only 18% of European citizens have in personal pension product.

A more developed EU supplementary pensions sector can play a key role in improving financial security for citizens during retirement. At the same time, it will help to develop EU capital markets and deploy investments to finance EU growth and innovation.

Personal pensions (also known as “private pensions”) are long‑term savings products that individuals contribute to on a voluntary basis, complementing state and occupational workplace pensions. They help build a stronger, more diversified pension and give have a role to play in giving pension savers the opportunity to benefit from long‑term capital market developments, while maintaining the desired risk/return exposure. The pan‑European personal pension product (PEPP) is a voluntary personal pension scheme that can complement existing public and occupational pension systems, as well as national private pension schemes. A PEPP may also receive employer contributions where this has been agreed.

The pan‑European personal pension product (PEPPs) is regulated by Regulation (EU) 2019/1238, also known as the ‘PEPP Regulation’. The Commission has published a proposal to review this Regulation on 20 November 2025.

Relevant legislation