It has been known for some time that the finance minister is planning a retirement savings account as an alternative to the Riester pension. But now Lindner is also commenting on the details of state funding.
According to the wishes of Federal Finance Minister Christian Lindner, a private share portfolio for retirement provision should be subsidized by the state with up to 600 euros per year. “People can invest in securities of their choice,” the FDP chairman explained his plan in the “Rheinische Post”. “The state subsidizes every euro invested with 20 cents up to a maximum of 3,000 euros per year.” Savers could therefore receive a maximum of 600 euros extra from the state for their retirement provision.
In addition, according to Lindner’s idea, the returns in the portfolio should remain tax-free: “This way, the compound interest effect can take full effect over decades. Tax is only due when the money is paid out in old age, as is the case with the statutory pension.”
Project to start in early 2026
Back in May, when presenting the second pension package, which is to be passed by the Bundestag in the coming months, Lindner and Social Affairs Minister Hubertus Heil (SPD) had already promised further reform steps for the current legislative period. Lindner had already mentioned the retirement savings account, the specific design of which he is now presenting.
Whether his plan will be implemented before the federal election next year remains open for now. According to a spokeswoman, the FDP parliamentary group aims to have the plan in the official gazette by the middle of next year so that the project can start on January 1, 2026. Lindner’s ministry only said that a corresponding draft law is currently being discussed within the government. The Heil Ministry, which is responsible for pensions, did not comment on the issue at all at the government press conference on Friday.
Criticism from the social association
As Lindner explained to the FDP parliamentary group last week, the pension portfolio is intended to be an alternative to the so-called Riester pension, through which the state has been promoting private pension provision for over 20 years – and which has long been criticized. “The Riester products reflect the German mentality of absolute security, a kind of belt and suspenders at the same time,” said Lindner – but this desire for security goes hand in hand with too low a return. In contrast, the finance minister sees a share portfolio as a clear advantage: “Experts have calculated that after 40 years you can even be a millionaire if you save 250 euros a month and thus make full use of the state subsidy.”
The social association SoVD, on the other hand, is skeptical about the plan and would rather see the state subsidy benefit the statutory pension. “We doubt that the stock market is the right way to go, as low-income earners in particular have nothing left to invest,” SoVD head Michaela Engelmeier told the German Press Agency. “In addition, Lindner’s proposal does not make the employers responsible – unlike with the statutory pension.”
Lindner’s appearance before the FDP parliamentary group
Source: Stern
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