The European Commission is urging member states to make use of the capital market and thus include more shares in their pension provision. Today, it presented proposals on funded pension provision, including a revision of the rules for a Pan-European Personal Pension Product (PEPP). 

„This initiative by the European Commission is a wake-up call for member states. Germany has a lot of catching up to do. Now is the time to start by pushing through the reform of private pension provision by introducing a retirement savings account in the German federal cabinet,“ said Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut. Drastically rising contributions and tax subsidies to finance the deficits in the statutory pension system are placing a particular burden on the younger generation. It is therefore important to use the capital market and, above all, equity investments in pension provision in addition to the pay-as-you-go system. Countries such as Sweden and the Netherlands are pioneers in Europe in this regard.

The Commission's proposals on private pension provision are a step in the right direction, as they completely dispense with guarantee requirements that make equity investments more difficult. The cap of a maximum of one per cent annual costs is being abolished as a contribution to reducing bureaucracy. In addition, private pension products are also to be used in occupational pension schemes.

The European Commission is urging member states to make use of the capital market and thus include more shares in their pension provision. Today, it presented proposals on funded pension provision, including a revision of the rules for a Pan-European Personal Pension Product (PEPP). 

„This initiative by the European Commission is a wake-up call for member states. Germany has a lot of catching up to do. Now is the time to start by pushing through the reform of private pension provision by introducing a retirement savings account in the German federal cabinet,“ said Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut. Drastically rising contributions and tax subsidies to finance the deficits in the statutory pension system are placing a particular burden on the younger generation. It is therefore important to use the capital market and, above all, equity investments in pension provision in addition to the pay-as-you-go system. Countries such as Sweden and the Netherlands are pioneers in Europe in this regard.

The Commission's proposals on private pension provision are a step in the right direction, as they completely dispense with guarantee requirements that make equity investments more difficult. The cap of a maximum of one per cent annual costs is being abolished as a contribution to reducing bureaucracy. In addition, private pension products are also to be used in occupational pension schemes.

The European Commission is urging member states to make use of the capital market and thus include more shares in their pension provision. Today, it presented proposals on funded pension provision, including a revision of the rules for a Pan-European Personal Pension Product (PEPP). 

„This initiative by the European Commission is a wake-up call for member states. Germany has a lot of catching up to do. Now is the time to start by pushing through the reform of private pension provision by introducing a retirement savings account in the German federal cabinet,“ said Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut. Drastically rising contributions and tax subsidies to finance the deficits in the statutory pension system are placing a particular burden on the younger generation. It is therefore important to use the capital market and, above all, equity investments in pension provision in addition to the pay-as-you-go system. Countries such as Sweden and the Netherlands are pioneers in Europe in this regard.

The Commission's proposals on private pension provision are a step in the right direction, as they completely dispense with guarantee requirements that make equity investments more difficult. The cap of a maximum of one per cent annual costs is being abolished as a contribution to reducing bureaucracy. In addition, private pension products are also to be used in occupational pension schemes.