Germany too Fast-Track New Pension Scheme, Potential โSuccessor to Riester
Berlin – Theโค German federal government is accelerating โขplansโฃ for a new state-sponsored pension scheme, potentially launching as early as 2026, aimedโ at addressing โtheโฃ growing pension gap.โ The โinitiative,โ dubbed the “early start pension,” will be available to all citizens over theโฃ age of 18.
Theโ move โคbuilds onโค previous work by former Federal Minister of Finance Christian โLindnerโค (FDP), who drafted a โplan โคfor a “retirement savings account” duringโค theโ last โฃlegislativeโ period. That proposalโ centered on long-term, broadly diversifiedโ stock โmarket โinvestments withโข state subsidies and tax โsupport during the savings phase, but without guaranteed returns on contributions – a key differenceโฃ from the existing Riester pension.
financial sector leaders have welcomed the accelerated timeline.โ Thomasโ Richter, CEO of the โGerman fund association BVI, โขstated the reform “will help narrow the pension gap for 50 million people betweenโ the agesโ of 18 and 66.” โขThomas โSoltau, board member of neo-broker Smartbroker, called the retirement savings account “a real game changer” if the current draft โขlaw โฃremains unchanged.
Consumer advocacy group “Finanztip” also expressed support,advocating for a state-funded retirement savings account accessible to all consumers regardless of age or income. Editor-in-chief Saidi โSulilatu cautioned โagainst repeating the complexities of the Riesterโฃ pension, โstating, “In Germany we tend to complicate everythingโฆPeople didn’t even know what they โคhad signed.”