mast image

Impact Investing

IPE special report May 2018

Sections

Germany considers Riester revision

GERMANY – Social security minister Ulla Schmidt is examining how to simplify and boost the take-up of Riester personal pensions, in a U-turn from Chancellor Schroeder’s insistence last year that no changes would be made.

Talks are underway about how to encourage more citizens - including the self-employed - to take up private pensions. One issue being discussed is how to simplify the ways by which the Riester-Rente are taken up. The ministry is said to be “open to relevant proposals”.

Changes to the Riester-Rente process have become necessary. The take-up of private Riester pensions – named after labour minister Walter Riester - one year after their introduction has been below expectations. At the end of last year around three million Germans had signed up for one - significantly lower than Schmidt’s target of four million.

The slow take-up has been blamed on complex rules, and uncertainties over last year’s election results. It had been hoped that a new government would simplify the procedures, but Chancellor Gerhard Schroeder insisted that no changes would be made.

The U-turn will no doubt provide some relief, although Schmidt has given no clue about how any revision would occur.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2435

    Asset class: CLOs.
    Asset region: Global.
    Size: USD 50m.
    Closing date: 2018-05-22.

  • QN-2436

    Asset class: Real Estate - Core Open-ended Real Estate Equity Fund (non-listed).
    Asset region: Asia Pacific.
    Size: Approx. CHF 70-100m per investment.
    Closing date: 2018-05-25.

  • QN-2438

    Asset class: High Yield Bonds.
    Asset region: US.
    Size: USD 300 million.
    Closing date: 2018-05-25.

Begin Your Search Here