mast image

Impact Investing

IPE special report May 2018

Sections

Growth in German corporate pensions stagnates

GERMANY - Two out of three German companies offer employees a corporate pension provision, reaching around 78% of the working population, according to a study by German market research firm Psychonomics.

The yearly report is less positive on future growth in the number of companies offering company pension plans, arguing since 2003 the number of companies offering employees pension provisions has languished.

However, the uptake among smaller and medium sized companies, with up to 500 employees, is still lagging behind that of larger corporations, the study has found.

Additionally, the number of employees without a contract that includes pension provision interested in a pension is only around 10%.

The news comes following last month's remarks by Klaus Mössle, former president of the now-defunct European Asset Management Association and now Fidelity International's head of German institutional business.

Mössle has warned Germans face an income drop of nearly half in retirement, with one of the problems being Germans overestimate the provision situation and the fairly limited company pension provision landscape in Germany.

Company pension amount to only 5% of the average households' retirement income, he told IPE in April.

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