The leaders of the German asset‑management firms Union Investment and Lupus Alpha have voiced strong criticism of the federal pension policy.
Ralf Lochmüller, managing director of Lupus Alpha, told the business magazine “Capital”:
“I had higher expectations for the early‑start pension. Ten euros a month from age six simply doesn’t create real impact”. He added that voluntary contributions should be unlimited and that the early‑start pension only makes sense when paired with a dedicated retirement savings account.
Hans Joachim Reinke, CEO of Union Investment, emphasized a lifetime view of private pension savings-from age six to 66-highlighting that the early‑start pension is only part of the solution.
New statistics on German investment behavior show that younger people now play a bigger role in capital markets. Reinke noted:
“They no longer trust the statutory pension and understand the need to save. Yet many jump straight into alternative investments or cryptocurrencies, taking on high risk”. He warned that a lack of financial education leads to costly mistakes down the line.
From Lochmüller’s perspective, successive governments have failed to reform pension provision. “The first pillar-the pay‑as‑you‑go statutory pension-cannot be reformed, to the detriment of the younger generation” he said. He dismisses the idea of a sovereign fund whose dividends would pay current pensions as unrealistic, arguing it’s too late; such a fund should have been established thirty years ago, like in other countries.
While Reinke supports strengthening private pension schemes, Lochmüller advocates for improved company‑based pension plans. He argues that they enjoy high public acceptance and should reach up to 90 % penetration.
