September 2025
22Sep

Germany proposes a solution to the pension crisis: a monthly ‘salary’ for children aged 6 and over

“The welfare state we have today is no longer financially sustainable,” German Chancellor Friedrich Merz stated at a CDU event at the end of August. His remarks follow the government’s agreement to push through a reform of the pension system, aimed at containing the deficit. To address this, Merz proposed incentivizing private savings from an early age as a potential solution. The “Early Start Pension” initiative suggests that children aged six to 18 attending school would receive €10 per month from the German government, which would...

September 22, 2025
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09Sep

Germany. Demographics hit pension systems with full force

Bolstering the still underdeveloped second and third pillars of retirement provision is unavoidable. Expanding occupational and private pensions via pension funds and insurers would not only help shrink – or even close – the private savings gap, but also ease the strain on public budgets by stabilising or even reducing transfers to the state pension system. And not least, it would mobilise additional capital for investment through contribution funds channelled into capital markets. Lack of ambition The new CDU/CSU/SPD coalition government,...

September 9, 2025
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August 2025
12Aug

German second pillar reform ‘falls short’, say industry bodies

Germany’s occupational pensions industry has expressed disappointment with draft legislation to reform the second pillar pension system, calling for further changes to fully unlock the potential of company pensions. The draft law, prepared by the finance ministry and the ministry of labour and social affairs, aims to extend occupational pensions in small and medium-sized enterprises (SMEs) via defined contribution (DC) schemes under the so-called social partner model, widen automatic enrolment, and allow occupational pension vehicles such as Pensionskassen and Pensionsfonds...

August 12, 2025
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06Aug

Update to German pension legislation sets out comprehensive reform

New draft legislation from the Federal Ministry of Labor and Social Affairs (BMAS) aims to comprehensively reform and strengthen occupational pension schemes, but it remains to be seen whether this idea will be realised, experts have said. Dr. Andreas Schöberle and Felix Pickert, employment law experts at Pinsent Masons, were commenting following the publication of the draft bill (56 pages/516 KB PDF). The aim is to increase the prevalence of occupational pensions schemes, particularly in small and medium-sized enterprises and among low-income earners. According to...

August 6, 2025
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July 2025
22Jul

Germany. Alarming Wage Statistics Indicate Increased Risk of Poverty in Retirement

The risk of poverty in retirement is on the rise in Germany, as indicated by recent statistics that reveal alarming trends. A report suggests that millions may face financial difficulties in their later years due to inadequate income levels. According to data, almost one in five individuals over the age of 65 were considered at risk of poverty last year, a figure that has been steadily increasing in recent years. A recent response from the German government to a query...

July 22, 2025
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08Jul

Germany’s 34.1 billion euros pension gives mandate to China stock fund

A German pension fund has tapped a Chinese firm’s Hong Kong arm to help it invest in local stocks, in a rare move among global allocators that have been cautious about gaining exposure to the nation’s equities. KZVK, which manages 34.1 billion euros (S$51 billion), gave US$50 million to Fullgoal Asset Management (HK) in the second quarter, according to sources with knowledge of the matter. The mandate is to invest in Chinese equities listed in Hong Kong, the mainland and...

July 8, 2025
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01Jul

Some 54% in Germany would work post-retirement to maintain lifestyle

Nearly 75% of people surveyed in Germany believe they will not be able to maintain their current standard of living when they retire, because their pensions will be insufficient and slightly more than half plan to keep working because of that. To maintain their standard of living, 54.3% of the of the 1,163 working respondents queried in a YouGov poll released on Monday, said they would be willing to work beyond the legal retirement age, mostly in part-time and up...

July 1, 2025
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June 2025
10Jun

The number of working pensioners in Germany has reached a record high.

In Germany, the number of working-age pensioners is increasing – over 1.1 million people aged 67 and older are working, which is 51,000 more than last year. This is a record figure in the country's history. Most pensioners who continue to work do so due to financial necessity, as pensions prove to be insufficient. Therefore, the authorities have started to encourage active work among pensioners by offering them financial bonuses and additional earning opportunities. BSW party leader Sahra Wagenknecht is astonished:...

June 10, 2025
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May 2025
29May

​Germany. Aon recommends halt in US investments as capital shifts to safer havens

Aon is recommending German corporate pension funds to refrain from making new investments in the US, and carefully rebalance allocations as capital moves to safer havens. Volatility on the equity markets, particularly in the US, continues, and it is likely to result in capital shifts to safe havens such as Europe and Japan, and possibly Canada and Australia, the consultancy wrote in a blog (published in German) to highlight the impact of capital market turbulences on occupational pensions in Germany. Companies offering funded...

May 29, 2025
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14May

Germany struggles to fix its pension system

Germany's baby boomers are retiring. Those born between 1955 and 1969, when the birth rate was at an all-time high, are also living longer. The workforce is not growing at the same rate. So who will pay the elderly's pensions? A considerable chunk of the federal budget goes into propping up the statuary pension system and the new Labor Minister, Bärbel Bas from the center-left Social Democratic Party (SPD), has reiterated an idea of how to partially fix that. The pension system in Germany, established in 1889,...

May 14, 2025
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