The Association of German Banks comments on the report by the Federal Ministry of Finance’s focus group on private pension provision
“Funded old age provision is vital for relieving the burden on the statutory pension scheme,” said Miye Kohlhase, Head of Clients and Markets, in reference to the report by the Federal Government’s focus group on private pension provision.
”Private banks have known for a long time that this is the only way for individuals to maintain a decent standard of living in old age. It is why we urgently need the legal go-ahead to encourage Germans to invest in shares, funds, ETFs and other securities. The government should now flick the switch and promote long-term private wealth accumulation via the capital market.
The report by the focus group on private pension provision is the right way to get started. In particular, we believe its specific recommendations to use shares, investments and real estate as a higher interest-bearing capital investment for old age provision is a sensible approach. However, the report should be seen only as an initial step. The next should be for the Federal Government to publish a draft bill on this issue before the end of this legislative period. We believe promoting investment saving would be ideal. It’s simple, easy and flexible; and also quick and easy to set up with an old age provision securities account.”
Click here to read the Association of German Banks’ position paper on promoting investment saving to maintain living standards in old age (in German only).