Lessons from the Pan-European Personal Pension product (PEPP)
By Hans van Meerten
Europe has come up with legislation for a new individual pension product: the PEPP. This introduces an individual retirement account that can be rolled out in the entire European Union (EU). And can be offered to citizens worldwide.
Europe – like most continents – is ageing at a rapid pace. In 2060, there will be two people at a working age for every pensioner, in comparison with four people at a working age at the present time. This puts the sustainability of the traditional of the different pension systems across Europe under significant pressure, despite reforms that are currently underway in many European countries.
The EU therefore feels the need to solve these retirement problems on a European scale.
Source SSRN
