Riester plans slow take-up

The take-up of private Riester pensions one year after their introduction has been below expectations and “disappointing”, according to Germany’s insurance industry.
According to the Gesamtverbands der Deutschen Versicherungswirt-schaft (GDV), at the end of last year around three million German citizens had signed up to a Riester-Rente, named after labour minister Walter Riester. The insurance group had originally forecast a take-up of five million.
The figures also fall below the government’s expectations. In November, social security minister Ulla Schmidt targeted four million sales for the state-founded private pension.
The slow take up in individual pensions in Germany 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 Schroder has insisted that no changes will be made.
Proposals by Germany’s coalition government for capital gains tax to be paid on profits from share sales has further threatened the new third pillar pensions system, as individuals would be taxed on their savings.

Have your say

You must sign in to make a comment


Your first step in manager selection...

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

  • QN-2563

    Asset class: Mid & Small Cap Equities.
    Asset region: Global.
    Size: USD $130m.
    Closing date: 2019-09-27.

  • QN-2564

    Asset class: Large Cap Growth Equities.
    Asset region: Global Developed Markets.
    Size: USD $130m.
    Closing date: 2019-10-04.

  • DS-2567

    Closing date: 2019-10-02.

  • QN-2569

    Asset class: Local Currency Bonds.
    Asset region: Global Emerging Markets.
    Size: $500m.
    Closing date: 2019-10-10.

Begin Your Search Here