The European pension is now available to clients in Slovakia. It has a strictly set upper limit on fees, is transferable, and is governed by European legislation. The first company in Europe to receive a license to provide the European pension is the Slovak fintech broker Finax.
The Pan-European Personal Pension Product (PEPP) is intended for all residents of the European Union. It is not tied to employment or the location where a person works. Its goal is to provide savers with an income in retirement alongside the state pension. It is a voluntary savings scheme that savers can transfer to another country when changing residence. Users will pay a maximum of 1 percent annually of the assets under management in fees.
Providers of the European pension can include banks, credit institutions, insurance companies, securities traders, investment firms, and management companies. To obtain a license to provide the service, they must indicate the risk and potential increase in the value of the client’s savings based on complex mathematical models.
The first service provider to achieve this is the Slovak online securities trader Finax, which also operates in the markets of Croatia, the Czech Republic, Poland, and Hungary. It established its robo-advisory platform in 2018, as one of the first fintech startups in Central Europe, and currently manages assets of 350 million euros for 40,000 clients. Finax allows registration via a mobile application using state-of-the-art facial biometric technology.
