New European pensions saving regime takes effect this week
EU legislation which gives effect to a new European pensions savings regime is being introduced this week
The Pan-European Personal Pension (PEPP) is a voluntary retirement savings option for EU citizens that complements existing pension schemes. It allows people to pay into the same scheme throughout the EU, even if they move countries.
Rachel McGovern, director of financial services at Brokers Ireland, which represents 1,225 brokers, says pension providers can now gear up to offer this product.
“The PEPP will herald a new era of choice for pension savers,” she says. “It will be open to anyone wanting to save for retirement, regardless of status – be they employed, unemployed, self-employed or a student. And it will operate in addition to any government-based or private-investment product.”
And she said all PEPP providers will need to offer an affordable default investment option, called the ‘Basic PEPP’, with costs and fees capped at 1pc of the accumulated capital per year.
Read more @Independent.ie
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