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Pension trouble: Scholz Ministry is said to have put the Riester reform on hold

2021-01-26T12:53:11.018Z

More than 16 million people “riests”. GroKo actually wanted to improve this model of pension provision - but not in 2021, according to a media report.



More than 16 million people “riests”.

GroKo actually wanted to improve this model of pension provision - but not in 2021, according to a media report.

  • Topic

    Riester pension

    : Union and

    The SPD * had

    agreed to

    reform

    the model

    in the coalition

    agreement.

  • Now,

    according to a media report,

    the Ministry of Finance * under Chancellor candidate

    Olaf Scholz has

    stopped the project for the time being.

  • After the news, strong criticism came from the business world.

Berlin - The GroKo should

not want to promote

the reform of the

Riester pension

until further notice.

This is reported by the

picture

, referring to a Ministry of Finance paper that it claims to have available.

The

legislation in 2021

, the point missing thus.

According to the report, there are already sharp reactions.

Jörg Asmussen,

for example, called for

a

“Riester revolution”

from

General Association of the German Insurance Industry (GDV)

.

His criticisms:

  • The contracts are

    "difficult to see through"

    for private investors

    .

  • "Our pension system is no longer in

    equilibrium

    !", Quoted

    Bild

    Asmussen.

  • The balance between the

    state

    pay-as-you-go system and

    private

    funding is missing.

When will the Riester reform come?

Vendors urge Scholz & Co. to act

His proposed solution?

“A simpler, subsidized old-age provision with

more flexible guarantees

that combines security with opportunities on the capital market.

Then Riester has great potential, especially for

families, ”

says Asmussen.

Hans Joachim Reinke

, head of the Union Investment fund company,

is said to have written

a

“fire letter”

to Finance Minister

Olaf Scholz (SPD)

.

For more and more savers, the Riester pension would have two major shortcomings:

  • the

    low interest rate

    environment

  • the

    providers

    100 percent guarantee

    on savings contributions

The latter guarantee should be reduced to

70 percent

, says

Reinke in the

picture

, who also wants to know that one in five of the more than 16 million Riester contracts is

“no longer saved”

.

The

2020 pension report

stated that around

66 percent

of employees were entitled to a supplementary pension from the company pension scheme or from a Riester pension.

It is also pointed out that

low-wage earners

in particular still do

not provide enough additional provisions for old age.

This mainly applies to

women

.

The social association

Diakonie

commented on the report as follows: It shows "that people who live on the edge of the subsistence level cannot make private provisions for old age".

(frs) * Merkur.de is part of the Ippen-Digital editorial network.

Source: merkur

All news articles on 2021-01-26

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