Germany too Fast-Track New Pension Scheme, Potential Successor to Riester
Berlin – The German federal government is accelerating plans for a new state-sponsored pension scheme, potentially launching as early as 2026, aimed at addressing the growing pension gap. The initiative, dubbed the “early start pension,” will be available to all citizens over the age of 18.
The move builds on previous work by former Federal Minister of Finance Christian Lindner (FDP), who drafted a plan for a “retirement savings account” during the last legislative period. That proposal centered on long-term, broadly diversified stock market investments with state subsidies and tax support during the savings phase, but without guaranteed returns on contributions – a key difference from the existing Riester pension.
financial sector leaders have welcomed the accelerated timeline. Thomas Richter, CEO of the German fund association BVI, stated the reform “will help narrow the pension gap for 50 million people between the ages of 18 and 66.” Thomas Soltau, board member of neo-broker Smartbroker, called the retirement savings account “a real game changer” if the current draft law remains 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 Sulilatu cautioned against repeating the complexities of the Riester pension, stating, “In Germany we tend to complicate everything…People didn’t even know what they had signed.”
