200 billion euros in generation capital by 2035

by time news

2023-08-06 18:00:00

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The Federal Ministry of Finance assumes that the planned generational capital will in any case yield enough returns to stabilize pension finances.

(Foto: Getty Images/EyeEm)

Berlin, Frankfurt The new funded pillar in the statutory pension insurance is to be significantly larger than originally planned. The federal government wants to pay twelve billion euros into the so-called generation capital from next year, the Handelsblatt learned from government circles.

This sum will be increased by three percent annually in the following years, it said. By 2035, generational capital should reach a volume of 200 billion euros.

In the coalition agreement, the SPD, the Greens and the FDP only agreed on start-up capital of ten billion euros for the project, which was initially known as a share pension. This sum is already reserved in the 2023 budget. The labor and finance ministries are said to have now agreed in their negotiations to expand the share pension project. Recently there were still concerns in the Ministry of Economic Affairs.

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