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.