Deutsches Aktieninstitut welcomes the ‘Frühstart-Rente’ and the Riester reform in the coalition agreement

Deutsches Aktieninstitut welcomes the plans for the ‘Frühstart-Rente’ and a reform of the Riester pension in the coalition agreement and calls on the federal government to use the return opportunities of equities in all pillars of retirement provision for the benefit of the people. This would also strengthen the capital market. After all, only a strong capital market is a relevant lever for the planned ‘Deutschlandfonds’ (German fund).

‘The early retirement pension is an original step towards using the high returns on equities in private retirement planning. It allows young people to gain positive experiences with the capital market early on, to benefit from the returns and to build up assets in the long term. However, the German government must not stop here,’ comments Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut.

Sweden is an example of how pension provision and the tax-privileged investment savings account are levers for more volume in the capital market. This is confirmed by our current study together with the Boerse Stuttgart Group. ‘Only a functioning capital market can be a relevant lever for the planned German fund, not the other way around,’ Peucker continues. Further reforms are needed for this. 

Leveraging the earnings power of equities in all pillars of retirement provision

‘It is important to use the capital market to stabilize all three pillars of retirement provision. We therefore welcome the coalition partners' planned reform of the Riester pension and assume that the introduction of a new retirement provision custody account is linked to the goal of a new retirement product. Despite these measures, we are still lagging far behind the international standard in Germany. The goal is to finally enable people in Germany to fully benefit from the high returns on equities, equity funds and other capital market investments. Their use in all three pillars of retirement provision in Germany should therefore be on the agenda for this legislative period,’ explains Peucker.