European Wide Pension Consultation

European Wide Pension Consultation.

Last week, the European Insurance and Occupational Pensions Authority (EIOPA) launched a consultation for the creation of a standardised Pan-European Personal Pension product (PEPP).

The consultation started on 7 July 2015 and closes on 5 October 2015.

The objective is to create a Europe wide set of pension rules to enable pan-European, cross-border pension schemes where European nationals will be able to set up a pension scheme in one country and moved to another or alternatively allow pension companies themselves to market their products across Europe.

This makes total sense in creating uniformity and we suggest that the UK is already thinking of this given that the rumours that the Chancellor may remove tax relief on pensions altogether in the UK and offer tax breaks when you draw your pension much in the same way as ISAs.

As ever, our tongue in cheek and suggest that the reasons tax relief could disappear on pensions would benefit the government in two ways:

1. Government will save millions of pounds by not offering tax relief
2. Whilst you may have tax-free money when you reach retirement this also means that the whole of your pension income could be means tested for care in later life