pension
Restart required for private old-age provision
Consumer advice centers are calling for a fresh start in private old-age provision. photo
© Thomas Warnack/dpa/dpa-tmn
The Riester pension as a private old-age provision “cannot be reformed”, criticize consumer advice centers. They demand a new system – and outline how this should be designed.
The consumer centers have called for a restart in private old-age provision in Germany. “The Riester pension cannot be reformed. Many governments have tried to do that,” said the head of the Federal Association (vzbv), Ramona Pop, of the dpa
“It needs a new system,” Pop said. “The new approach would have to be to get private old-age provision on the way in a form of organization under public law.” This could be done through a public fund. “There’s a bewildering array of products out there, and it would be good if the state put a fund like this in place,” Pop said. “In Sweden there is a similar model with the guaranteed pension.”
Expectations of the traffic light coalition
There are good approaches in the coalition agreement. “But whether the coalition will really make any progress here is in the stars,” said Pop in view of the current crises and the differences in the traffic light alliance.
SPD, Greens and FDP had promised in the coalition agreement: “We will fundamentally reform the current system of private old-age provision.” For this purpose, the offer of a publicly responsible fund should be examined with an effective and cost-effective offer with the option of opting out. “In addition, we will examine the legal recognition of private investment products with higher returns than Riester.”