The pan-European personal pension product is a supplementary personal pension product based on a voluntary offer and a voluntary participation – without connection to the pension insurance system, so it is private, individual and voluntary. PEPP offers an alternative option for old age provision. This long-term financial product will be especially beneficial for nomads, more precisely citizens of European Union who work in several member countries, as it will enable to create savings for old age and the conditions for its provision are uniform throughout the European Union, member states can only partially adjust some of the relevant specifics for that country. It can be an insurance product, a deposit or an investment product. Providers can be various entities of the financial market, i.e. banks, insurance companies, investment companies or securities traders. These entities will be able to offer up to six investment options.
In terms of creating a long-term financial reserve, the Czech market already has a very wide range of options, from classic supplementary pension insurance to supplementary pension savings to investment products such as mutual funds, so the question is how much interest PEPP will generate in the Czech republic. Now the essential and main big challenge for both banks and pension companies and as well as for the state is sufficient education and an appeal to Czech clients so that they do not rely only on the state pension in the future.