The German Federal Minister for Housing, Urban Development and Building, Verena Hubertz, has expressed strong support for equity-linked pension schemes, advocating for a re-evaluation of existing reservations within her own party.
Responding to criticisms often levied against such models as speculative, Hubertz told the “Tagesspiegel” newspaper that such viewpoints reflect outdated approaches. She highlighted the successful implementation of similar schemes in Scandinavian countries, asserting they are not inherently risky.
Hubertz emphasized the potential to leverage funds from pension reserves for vital infrastructure projects, including heat networks, housing development and secure investments, benefiting the wider population.
The Minister also voiced her continued enthusiasm for the concept of “Generation Capital” a previously proposed initiative that ultimately did not materialize in the last parliamentary term. She believes the model is not solely about wealth redistribution but also about enabling more citizens to build assets.
Hubertz brought a question of fairness into the discussion, noting the disparity between individuals with the financial literacy and income to invest in exchange-traded funds (ETFs) and those in other professions who are either unable or hesitant to participate in private investment or benefit from the stock market. She suggested a needed internal discussion within the Social Democratic Party regarding these financial models and their potential benefits for a broader segment of the population.
