The pension system is today faced with many challenges, how in Croatia so in many other countries of the European Union. In that context, the creation of a single market for personal pensions in the European Union would help to address various market failures through the development of personal pension products and the introduction and provision of a Pan European personal pension product (PEPP). The development of personal pension products could contribute to the sustainability of public finances, ensure adequate pension incomes and encourage long-term investments. A Pan European personal pension product would be an additional personal pension product (III. Pension pillar) that gives all citizens of the European Union greater opportunities for long-term retirement savings. It would be transferable to other European Union countries, standardized, simple, transparent, cost-effective and flexible. That flexibility would enable its adaptation to the economic environment of the European Union, but also to the national laws and rules of the EU member states. Regulation and supervision, tax treatment as well as other elements of a Pan European personal pension product will depend on the national legislative frameworks of the EU Member States, which could affect the success and effectiveness of such a pension product. The position and attitude of the Member States of the European Union and many other institutions and committees will be essential for the introduction of Pan European personal pension products on the EU market. The aim of this paper is to identify contemporary challenges facing the pension system, recognize the importance of personal pension products and the single market for personal pensions in the European Union, and explore the goals, main characteristics and benefits of Pan European personal pension products for clients and providers.