Asset managers, insurers and investment platforms are positioning themselves to capture a share of Germany’s private pensions market after legislation approved in March paved the way for a new generation of retirement savings products.
The reform establishes the framework for retirement savings accounts (Altersvorsorgedepot) that will be able to invest in equities, mutual funds, exchange-traded funds (ETFs) and European Long-Term Investment Funds (ELTIFs) from 1 January 2027.
According to S&P Global Ratings, the reform could generate between €26bn and €56bn of additional annual net inflows after a transition period of one to two years, compared with approximately €8.4bn invested in so-called ‘Riester’ products in 2024. Riester pensions, named after a former labour minister and introduced in 2002, allow for tax incentives but only to capital-protected supplementary pension products.
Allianz Leben, the life insurance subsidiary of Allianz, plans to launch new retirement products at the start of next year in partnership with Allianz Global Investors.
The insurer announced yesterday that it will introduce a retirement investment account without guarantees, a standard investment account (Standarddepot) with two funds and no contribution guarantees, and a retirement provision contract (Altersvorsorgevertrag) offering either an 80% or 100% contribution guarantee.
Last week, Franklin Templeton and MorgenFund, the investment platform owned by DWS and BlackFin Capital Partners, announced a partnership to offer retirement savings accounts.
Under the arrangement, MorgenFund will provide custody account solutions, funds, ETFs and investment infrastructure, while Franklin Templeton will contribute investment capabilities, product development support and retirement planning expertise.
“At Franklin Templeton, we know from markets like the US – where we have decades of experience with 401(k) plans and other retirement solutions – how important policy-backed frameworks for private retirement provision can be,” said Christian Machts, head of Germany and Austria.
DWS chief executive officer Stefan Hoops told analysts in late April: “The pension reform is something which will offer significant upside to active funds, active equity, active multi asset, [and] I think also active alternative funds.”
Union Investment, Germany’s largest provider of Riester pension products, plans to offer a standard equity-based product built around active ETFs, alongside a solution based on actively managed funds. The products, with and without guarantees, will be marketed under the UniVorsorge brand through the cooperative banking network.
“We are confident that we will maintain our strong position in the market for retirement provision,” said Jochen Wiesbach, managing director.
Fidelity International is also preparing to launch products next year through its affiliate FIL Fondsbank (FFB), including a premium solution investing in active ETFs and a standard product based on low-cost passive index funds.
“We combine active management and global retirement expertise with an established investment platform (FFB) and a tailored glide path,” said Susanna Wooders, head of Fidelity International’s German business.
Investment platform Growney also plans to offer retirement savings accounts and portfolio solutions in partnership with Vanguard.
The new retirement savings accounts are intended to replace almost 16 million Riester contracts, many of which have been criticised for high costs and low returns. The framework targets long-term savers seeking greater exposure to capital markets and potentially higher investment returns.
