The European pension is now available to clients in Slovakia. It has a strict fee cap, is portable, and is bound by European legislation. Slovak fintech broker Finax is the first European company that became licensed to offer it.

All residents of the European Union can open a pan-European Personal Pension Product (PEPP). It is not tied to employment or the place of work. Its goal is to provide the saver with an old-age income supplementing the state pension. Savers can transfer this voluntary savings scheme to another country when they change their place of residence. The maximum fee is 1% of the assets under management per annum.

Banks, credit institutions, insurance companies, securities dealers, investment companies, asset management companies are among the institutions eligible to provide PEPP. To get authorized, they must use complex mathematical models to demonstrate the riskiness and potential appreciation of the client’s savings.

The first provider to complete that is Finax, a Slovak online securities dealer also operating in the Polish, Croatian, Czech and Hungarian markets. It founded its robo-advisory platform in 2018 as one of the first fintech start-ups in Central Europe and currently manages €350 million of assets for 40,000 clients. Finax provides registration via a mobile app using the latest facial biometrics technology.

Since Slovakia adopted the legislation necessary to introduce PEPP in early 2022, Finax can now provide it to local clients.

“Starting today, Slovaks are the first in Europe who can increase their pension savings through the new European pension product. We have something to be proud of – a promising Slovak company that succeeded in bringing PEPP into practice and appreciating citizens’ money in a safe way,” says Minister of Labour, Social Affairs and Family of the Slovak Republic Milan Krajniak.

The national authorities and the European Insurance and Occupational Pensions Authority (EIOPA) will supervise the PEPP, bringing a form of legislative certainty, as uniform rules make it independent from political decisions by individual governments.

“We seek to offer PEPP primarily to multinational companies and young people with job mobility across the EU. Thanks to the associated tax and levy incentives, PEPP will become our key product in several countries, also helping us to settle in new markets”, adds Juraj Hrbatý, CEO of Finax.

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