The consumer rights federation VZBV welcomed the changes to the Riester pension reform that the Union (CDU/CSU) and SPD reached on Tuesday. “This agreement is a milestone for consumers and a good day for everyone who needs to plan for private retirement” said VZBV chair Ramona Pop. “Finally there will be a standard product for everyone that is intended to be cost‑effective and yield‑oriented. From now on, the focus will be on making the new standard product and its access as consumer‑friendly as possible”.
In its coalition agreement, the federal government had pledged to replace the current Riester arrangement with a new savings product that also includes a simplified standard option. The original draft from the federal government still allowed providers to create their own standard products and distribute them for a commission. A centralized standard product was missing from the mid‑December draft, a gap that the Union and SPD addressed on Tuesday. Going forward, in addition to private offerings, there will be a low‑cost central standard product that will serve as a benchmark for private options and enable consumers to save in an easy and transparent way. The VZBV has been advocating for over a decade to replace the Riester pension with a state‑run standard product modeled on the Swedish system.
