The union’s parliamentary group has voiced strong criticism of the new Riester pension draft, as reported by the “Süddeutsche Zeitung”. In the coalition agreement, the Union and the SPD promised to convert the Riester pension into a “new provision product” aiming not only to remove bureaucratic barriers but also to lower costs for retirement savings. A draft bill has since been introduced, led by Finance Minister Lars Klingbeil of the SPD.
Stefan Nacke, chair of the Union’s workers’ group, told the newspaper that more people must be encouraged to use private retirement plans, but the mistakes of the original Riester reform must not be repeated. “We need increased efficiency in a market that has so far functioned only inadequately” he said. He calls for a “real standard product” for employees, rather than a multitude of options for insurance firms as the current draft proposes.
Nacke suggests that this public‑law standard product should be centrally authorized and opened for online enrolment, a move that would trim initial and administrative costs to a minimum. He cites Sweden’s model, where state‑run structures deliver high‑yield solutions with administrative charges of only 0.1 %. In contrast, the draft presented to the Bundestag allows costs of up to 1.5 % per year-an amount he deems far too high. “1.5 % is simply unacceptable” Nacke added.
He warned that, if the draft from Klingbeil’s ministry is not amended, the market could become cluttered with countless variations that offer no clear guidance to consumers. “If we truly want to encourage more people to plan for retirement, we must simplify private pension solutions, not complicate them” he insisted. “In the end, it cannot be the best option to do nothing at all”.
