Europe is facing ageing populations as people are getting older and birth-rates are on the decline. This is placing an increasing strain on public pension systems throughout the EU. Although no two systems are alike, a well-rounded multi-pillar pension approach is of paramount importance if future EU citizens are to have sufficient income after retirement. Pension products inherently have a (very) long investment horizon and can span up to 40 years. Combining the long-term nature of these investments with sustainable (ESG) characteristics will further increase the attractiveness of these products as investors pursue environmental or societal objectives in addition to financial returns.
The new Pan-European Personal Pension product (PEPP) complements existing retirement provisions in the EU. It will complement national pension systems and has the potential to become the next UCITS: a recognised brand in the investment world.
Read more about the PEPP