An effective pension system requires equities in all three pillars of the pension system

Commenting on today’s summit at the Federal Chancellery on the upcoming social reforms, Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut, said: 

“Ensuring that pension provision is fit for the future is one of the key challenges of this parliamentary term. Experience from other countries shows that greater use of equities is essential to securing people’s livelihoods in old age. In Germany, too, we need equities across all three pillars to create a more robust pension system."

The German Bundestag recently approved a reform of private pension provision. At its heart is the introduction of a pension savings account. Now, the occupational and statutory pillars of pension provision also need updating.

Deutsches Aktieninstitut proposes opening up the newly introduced pension savings account to occupational pension provision. “That would be a straightforward way to simplify occupational pension provision and improve portability,” explains Peucker. “We hope that today’s summit will also provide impetus for the use of shares in occupational and statutory pension provision,” Peucker continues.