Governments in Germany and Austria are seeking public support for reforms that could significantly reshape their pension systems.
German labour minister Bärbel Bas said during a debate on the state budget in the Bundestag last week that the social welfare system must be made “fit for the coming decades”.
Pensions are at the centre of the reform agenda.
“If we want to keep our promise that pensions will remain secure in the future—and, above all, that young people will not be overburdened, then the reform is necessary,” she said.
Bas’s message comes after the far-right AfD’s historic victory in the Saxony-Anhalt regional election, which is challenging the government’s pension reform plans.
A post-election survey by research institute Infratest dimap found that social security was the most important issue influencing voters’ decisions in the state, ahead of peace in Europe, the economy and internal security.
Only 13% of voters said the government should implement the pension and healthcare reforms based on the pension commission’s recommendations published in June.
The Austrian government is also seeking to make the case for changes to the country’s public pension system.
Chancellor Christian Stocker has proposed establishing a sovereign wealth fund with €100bn in capital over the coming decades to support first-pillar pensions.
In Switzerland, pension funds are building up reserves to protect against continued market volatility, driven by regional geopolitical conflicts and high public debt, according to consultancy PPCmetrics.
Consultancy Complementa expects further fixed income reallocations, with Swiss schemes moving away from government bonds towards Swiss franc-denominated and corporate bonds.
The share of fixed income investments has been steadily declining, reaching a historic low of 29.3% in 2025, according to Complementa’s latest risk check-up study.
Items to note:
- The IPE Real Assets Infrastructure & Natural Capital Global Conference & Awards 2026 is taking place on 17 and 18 September in Munich.
Luigi Serenelli
DACH Correspondent
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