Riester pension an important part of old-age provision: consumer advocates do not consider the system to be sustainable – the traffic light meanwhile relies on examination procedures.
Berlin – what’s next for the 2022 pension? After the new federal government made up of the SPD, Greens and FDP in its coalition agreement on the future of statutory pension* has known, experts see a particular need to catch up in private old-age provision. Consumer advocates had complained that the Riester pension was not sustainable and that a new regulation was needed with a grandfathering. The one laid down in the coalition agreement Five-point plan for the 2022 retirement of the traffic light* But this is disappointing, said the head of the federal consumer association, Klaus Müller, of the German press agency. “At this point, the coalition did not deliver what it could have delivered,” he criticized.
|Entry age in Germany:||67 years of age|
|Average pension man:||Average pension man:|
|Average pension woman:||768 euros|
Pension 2022: New regulation of the Riester pension – German pension insurance calls traffic light for clarification
While the consumer advocates insisted on a new regulation of the Riester pension, the German pension insurance has the traffic light coalition of Federal Chancellor Olaf Scholz* (SPD) called for clarification of private pension provision. “There are people who say: Riester is a good pension for me,” said the President of the German Pension Insurance Association, Gundula Roßbach, in Berlin. It is open to these people how things will continue with regard to the 2022 pension – the coalition agreement does not provide any information on this. The Federation of German Consumer Organizations does not consider the Riester pension to be sustainable.
Unlike the consumer advocates, who see a particular need to catch up in private old-age provision, she speaks out CSU for the strengthening of the youth and calls for a stronger single parent pension* also a generation fund in which the basis of old-age provision is saved. For more equal opportunities she wants Traffic light coalition on a basic child security* set, which should ensure less child poverty in Germany.
Riester pension is very popular – more than 16.2 million private pension contracts
The Riester pension has a long tradition in Germany and is very popular nationwide for private pensions. As the Ministry of Labor announced for the third quarter of 2021, there are currently more than 16.2 million Riester contracts with state funding in Germany. In contrast, there are 45.3 million people in employment (as of November 2021). While the BAbyboomer generations soon to retire* go, expect Retirees will have golden years in their retirement in the future*.
The Riester pension is mainly used by “important target groups” such as women with children and people with low earnings, according to Roßbach. She sees the uncertain future of private old-age provision as problematic: although the coalition agreement provides for the protection of old contracts, it is not clear what it looks like for new applications.
Retirement provision and pension 2022: Demand for Riester pension is falling
About 20 years after its introduction, the Riester pension seems to have had its day as a pension. Named after the former Federal Labor Minister Walter Riester (SPD), it was originally intended to appeal to a significantly larger part of the population. But since 2015 at the latest, the number of contracts had peaked. Since then, things have been going downhill. Also the politics recognized this in the run-up to the federal election in 2021 and proclaimed a strengthening of the old-age provision and the pension in 2022 during the election campaign as an integral part of her first legislative period. Meanwhile apply to Mini jobs from 2022 new regulations*. for Verdi lurks therein a danger for the pension*, old-age provision and retirement.
In the opinion of consumer advocate Klaus Müller, it was already clear to the current traffic light parties, the SPD, FDP and the Greens, that the current system of the Riester pension would be of far too much use to the insurers and far too little to the employees. Nevertheless, the coalition agreement would only contain test orders and no real reforms. That is not enough. “I’m sure that it works much better at the traffic lights,” said Müller. Meanwhile, some have to Retirees in old age still have a part-time job in order to cope with their retirement in 2022* to make ends meet.
German consumer association: simple, high-yield and low-cost pension product for retirement in 2022 and beyond
The head of the Federation of German Consumer Organizations is therefore in favor of a simple, high-yield and low-cost pension product for employees who will retire in 2022 and beyond. Examples of how this could be achieved would be provided by other countries. In the past few years, they had achieved significantly better returns with publicly organized equity-based pension funds.
Müller therefore considers a publicly organized fund to be the right model. “It’s easier, it’s more profitable, it’s less expensive.” Labor Minister Hubertus Heil (SPD), who set the minimum wage on the way as quickly as possible* want to bring, Minister of Finance Christian Lindner* (FDP) and Minister of Economics Robert Habeck* (Greens) to put workers first and find a solution. Lindner had already announced that in future contributions to pension insurance can be fully deducted from tax *.
Private old-age provision: great need for action in the case of Riester pensions
In Müller’s view, the need for action in private old-age provision, such as the Riester pension, is significantly greater than in the case of company old-age provision or the statutory pension. It is important to Gundula Roßbach that the conditions are clear for everyone involved. “We notice in our advice that people have many questions about their old-age provision,” said the President of the German Pension Insurance.
It is also unclear what state replacement there will be in the future for products for which the contributions paid cannot be 100 percent guaranteed. For a safe On the other hand, Markus Söder (CSU) speaks out in favor of introducing a youth pension* out. (With material from dpa) *Kreiszeitung.de is an offer from IPPEN.MEDIA.
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