DeAM sees e5trn in pensions
Deutsche Asset Management has predicted that the German market for occupational and private pensions will expand to around €5trn in 2030 – or five times the current volume.
Breaking down the €5trn figure, DeAM said occupational pension assets should rise to €1.9trn in 2030 from €381bn currently.
Private pension assets should also reach €3.17trn by then from €650bn now.
DeAM’s pension market estimates, are less ambitious than previous ones. Recently, the consulting firm AT Kearney said German occupational pension assets alone would rise to some €4trn by 2030. This would exceed private assets, which would hit €3trn by then.
But like the other forecasters, DeAM said the growth of the second and third pillar would be driven by the government’s promotion of those pensions to compensate for the crumbling state benefit.
According to DeAM, Germany’s state pension will account for just 50% of retirement provision 25 years from now compared with 80% now.
Meanwhile, DWS, DeAM’s retail fund sister, reported robust growth with third pillar pensions