The Chief Executive Officer of Deutsche Börse, Stephan Leithner, is calling for a comprehensive reform of Germany’s pension system. In a commentary published in the Handelsblatt, Leithner proposes that every newborn child receives a state-supported investment account automatically. He suggests linking this step to the existing process where newborns are assigned a tax identification number, asking, “If a tax number is sent to each infant, why not also a depot number?
Leithner argues that the current system of pension financing is unsustainable in light of Germany’s demographic shifts. He advocates for a more significant integration of capital markets across all three pillars of retirement planning: state, occupational and private. He highlights successful models from other countries, citing Sweden’s equity pension scheme, Switzerland’s occupational pension system and private savings accounts in the United Kingdom as examples.
Leithner urges Germany to seize the opportunity and build a “Social Capital Market Economy” through bold reforms, stating that delaying action on this issue is socially irresponsible. He believes proactive and innovative solutions are crucial to ensure the long-term financial security of future generations.