Pension plans of the Ampel-Coalition: The share pension is coming

by time news

IIn terms of social policy, the three traffic light parties have big plans for their future coalition. Your first indent in this chapter of the coalition agreement is devoted to a reform of old-age provision. It becomes clear that the Social Democrats were able to prevail to protect their holding lines. The benefits from the statutory pension should not fall below 48 percent of average earnings, and the contribution rate should not rise above 20 percent of the salary.

Philipp Krohn

Editor in business, responsible for “People and Business”.

The coalition members acknowledge that this is challenging in the face of growing pressure from the high number of baby boomers retiring. That is why they want to think about models in all three pillars of old-age provision that allow higher returns in order to provide additional funds in this way. In all three pillars, that means: In the statutory pension, in the company pension scheme and in the subsidized private pension scheme, they announce that they will focus more on more promising capital investments.

The plan is unusual in the statutory provision, where Germany has an old tradition of funding, but after the Second World War it relied on pay-as-you-go financing. Here, the structure gets out of balance due to the widely differing number of current contributors and new retirees. The financing is no longer fair to the generations. And that is why “we will go into a partial fund of the statutory pension insurance in order to stabilize the pension level and the pension contribution rate in the long term,” says the coalition agreement.

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“Partial funded”, not share annuity

Nowhere in the text is there any mention of a share pension, as the FDP had propagated in its election manifesto. The phrase “partially funded” allows investments to be made in other forms of investment. This could also mean investments that institutional investors have always bought for old-age provision: real estate, shares, of course, equity investments or infrastructure investments such as renewable energy systems.

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