Bundesfinanzminister Lars Klingbeil (SPD) has shown, ahead of the Bundestag hearing, that he is open to adjustments for the pension‑reform law. “We want to set clear cost limits” he told “Welt am Sonntag”. “The standard product already has a cost ceiling – where exactly it kicks in is what I will discuss with my colleagues in parliament to find a good solution”.
Klingbeil added that the reforms should also give savers more freedom and transparency. “This will boost competition and, in turn, lower costs” he said. “Private pensions will become a better complement to the statutory pension for all income levels”. The parliamentary hearing is scheduled for Monday.
The draft legislation, drafted by the Federal Finance Ministry, currently assigns a cost cap of 1.5 % for the proposed standard product. Consumer‑protection groups and the Bundesrat have both argued for a lower ceiling. A federal‑government statement reads: “A cost ceiling set at such a high level runs counter to the aim of a transparent, consumer‑friendly, and especially attractive standard product”. The standard product is intended to be purchasable by any saver with just a few clicks online.
The overarching goal is a comprehensive overhaul of private pension provision. The draft law envisages that future savers can invest in a broad range of managed funds, ETFs, and even government bonds. State subsidies will cover the first €1,200 at 30 cents per euro deposited, and an additional €600 annually at 20 cents per euro.