The Sozialverband Deutschland (SoVD) criticized the draft law that the black‑red coalition introduced in the Bundestag on Thursday, arguing that the proposed reforms to private retirement savings are misguided and calling instead for a stronger statutory pension.
SoVD chairwoman Michaela Engelmeier told the Thursday edition of the “Neue Osnabrücker Zeitung” that the latest attempt at a state‑guided private pension scheme has failed spectacularly. “The Riester pension never met its objective – only about one in three employees under social‑insurance obligations actually save privately. The scheme mainly benefits the insurance companies” she said.
The association urges that the statutory pension system remain the core of retirement planning. The coalition’s pension commission is expected to release its findings in the middle of the year, and the results should be awaited before any further policy decisions are made.
Proponents of the new private‑pension proposal contend that it is simpler, more transparent, and cheaper than Riester. However, the cost cap for administrative expenses-set at 1.5 %-is considered too high. Engelmeier compared it to Sweden, where the state‑run pension fund’s management costs are only about 0.1 %, making it considerably more cost‑efficient.
She added that the fundamental problem remains unchanged, even with the reforms. “Those who have no euros left to save will not be able to make additional private contributions, even with subsidies. That is why a strong statutory pension is essential” she said.
Riester contracts have recently fallen, prompting the federal government to tighten the legal framework to make private pension options more attractive again.
