The “Süddeutsche Zeitung” reports that members of the Union (CDU/CSU) are strongly critical of the draft bill on the new Riester pension. In the coalition agreement, Union and SPD pledged to transform the Riester scheme into a “new retirement product” that would ease bureaucratic hurdles and lower costs. A draft bill has now been prepared by the Finance Ministry under Lars Klingbeil (SPD), who is leading the effort.
Stefan Nacke, chair of the Union’s employee group, tells the paper that the goal is to attract more people to private pension plans, but the mistakes of the previous Riester reform must not be repeated. He argues that the market, which has been operating inefficiently, needs a real standard product for workers rather than a flurry of options for insurers, as Klingbeil proposes.
The CDU politician suggests that an “public‑law standard product” be centrally authorized and sold online, which would keep administrative and transaction costs at a minimum. He cites Sweden as a model, where state‑organised structures can deliver high‑yield solutions with just 0.1 % management costs. By contrast, the current draft, which sits in the Bundestag, allows annual costs of up to 1.5 %. Nacke says that level is far too high: “1.5 % is simply unacceptable”.
He warns that if the draft from Klingbeil’s ministry is not revised, the market could become chaotic with countless variations that would offer no guidance to consumers. “If we truly want more people to save for retirement, we must simplify private pension schemes, not complicate them” Nacke insists. He concludes that the worst outcome would be that people make no decision at all.