EIOPA Staff Paper on the future Pan-European Pension Product (PEPP)

EU citizens collectively hold around €34 trillion in savings, yet around a third of these funds are held in bank deposits. At the same time, aging populations across the EU are increasing the strain on state pensions. With ever fewer workers supporting a growing number of retirees, Member States face the major challenge of continuing to provide adequate retirement income while maintaining robust public finances. 

The Pan-European Pension Product (PEPP), launched in 2022, was designed to offer a simple, transparent, cost-efficient and mobile retirement savings option with which European citizens could supplement their state pensions.

Still, due to various supply-side, demand-related and structural reasons, its uptake has been limited, warranting re-assessment. This Staff Paper takes stock of why PEPP has not lived up to its potential and proposes enhancements that could breathe new life into supplementary pensions across the EU.