German assets to hit €4trn
German occupational pension assets should rise to some €4trn by 2030, as the government continues to promote the second pillar, according to consulting firm AT Kearney.
In a study of retirement provision, the consultant says the prospects for private pensions were “equally as rosy”. For these pensions, it sees a market totalling €3trn by 2030.
All five forms of occupational pension administration in Germany as well as all forms
of private retirement provision, including the
so-called Riester and Rürup pensions, life insurance policies and funds.
AT Kearney says that despite the significant offering of tax-privileged corporate and private pensions, many German workers were still reluctant to take them up.
“Our estimates are that by the end of 2005 more than 60% of working people still will not have taken full advantage of the new…pensions,” says consultant Andreas Pratz.
He attributes the reluctance to the complexity of the various pensions as well as the performance of products, which were burdened “by the requirement to deliver a guaranteed rate of return.”