The Pan-European Personal Pension Product (PEPP) was launched with an ambitious vision: to create a simple, portable, and transparent retirement savings product that works across the European Union. Designed to complement national pension systems, the PEPP promised to address demographic challenges, support labour mobility, and channel household savings into sustainable long-term investments.
Yet, more than two years since its launch, the PEPP has struggled to gain traction. Awareness among consumers remains extremely low—76% of Europeans have never heard of the product—and only two providers, including LifeGoals, have entered the market. The barriers are not due to lack of interest but to structural challenges: a rigid 1% fee cap that doesn’t distinguish between provider costs and investment charges, mandatory advice requirements that add cost and complexity, fragmented national tax rules, and inconsistent VAT treatment.
At LifeGoals, we remain deeply committed to the PEPP’s success. As one of the first licensed providers, we have not only built a compliant and user-friendly product but also actively engaged with policymakers and regulators across Europe. Our position paper identifies practical reforms to unlock the PEPP’s potential, including:
- Integrating occupational and personal pensions within a single PEPP framework, avoiding unnecessary fragmentation.
- Encouraging uptake through auto-enrolment for uncovered workers and enabling employer contributions, particularly for SMEs.
- Reforming the fee cap by excluding VAT and third-party investment costs while preserving transparency for consumers.
- Simplifying regulation around suitability requirements, stochastic modelling, and sub-account management.
- Ensuring tax and VAT neutrality to create a level playing field across provider types and Member States.
We believe the PEPP can still fulfil its original promise: improving retirement adequacy for millions of Europeans while strengthening the Capital Markets Union. With targeted reforms, the PEPP can become the cornerstone of long-term financial security across the EU.
You can download the full paper here.