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By Dr. Sebastiaan Niels HOOGHIEMSTRA*
It is a key part of the European Commission’s work to create a pan-European personal pension product (“PEPP”) framework in the EU. For that purpose, Regulation (EU) 2019/1238 (“PEPPR”) was adopted in 2019 and is applicable since 22 March 2022. This contribution provides an overview of the key aspects of the PEPPR and concludes that Luxembourg might play a future role as Europe’s “Pension Hub”.
Currently, there is a dynamic and ongoing improvement in life expectancies that is not accounted for in pension systems designed to provide financial security in retirement. As a result of that, there are currently employment-based (2nd pillar) pension funds and first pillar pay-as-you-go (PAYG) state pensions...
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