After the citizens' allowance: Insurers bring citizens' pensions into play
Created: 01/11/2023 16:46
By: Patricia Huber
The Riester pension is now a discontinued model.
As a new option, insurance companies are proposing a citizen's pension.
But not everyone likes it.
Berlin – The traffic light coalition wants to “fundamentally reform the system of private old-age provision.” At least that is what it says in the coalition agreement between the SPD, FDP and Greens.
However, not much has happened so far with regard to this project on the subject of pensions.
Concrete plans should not follow until the summer of 2023.
Instead, the insurance industry is already providing new ideas.
Citizen's pension: Association of insurers proposes Riester replacement
According to the
Süddeutsche Zeitung (SZ)
, a working group of the General Association of Insurers (GDV) has developed a concept for private old-age provision.
The newspaper has the corresponding paper.
The idea is based on the concept of citizen income introduced on January 1, 2023.
The GDV calls the idea the "citizen's pension" - and it should be designed very simply.
"For every euro that is paid into the citizen's pension, there is a subsidy of 50 cents," the paper says.
No tax should be levied on the deposit, the payout should then be taxed.
According to the idea of the GDV, the new private old-age provision should be significantly simpler than the previous Riester pension, which experts largely regard as a failure.
Insurer plans: Less guarantee for the citizen's pension
According to
SZ
, the association proposes that the insurers only have to guarantee 80 percent of the contributions paid for the citizen's pension.
The Riester pension is currently 100 percent.
The paper states: "In this way there is a chance to achieve attractive returns." After all, insurers can invest with more risk.
One thing is clear for insurers: a change is needed.
The Riester pension is no longer well received by Germans.
However, the cost is still high because it is distributed on a commission basis.
This makes around eight billion euros in acquisition costs every year, as the
SZ
reports.
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Citizen's pension: Should the Riester pension be sacrificed?
While the GDV is still keeping a low profile on the plans, the Federal Association of German Insurance Merchants (BVK) is critical.
In a press statement it says: "The Federal Association of German Insurance Merchants (BVK) is amazed at the insurance industry's plans for a new 'citizen's pension' that have been made public and complains that the Riester pension should probably be sacrificed for this purpose." BVK President Michael Heinz would, on the other hand, consider a “comprehensive reform of the Riester pension that has been saved for two decades” to be more expedient.
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In addition, the BVK finds the possibility of online sales without advice to be "extremely questionable".
Instead of the citizen's pension, he calls for "Riester to simplify and simplify the bureaucracy and to significantly expand the group of those entitled to allowances and to reduce the contribution guarantees."
(ph)