The German Minister for Construction, Verena Hubertz, has expressed strong support for equity-linked pension schemes, a model that has faced internal skepticism within her own Social Democratic Party (SPD). Responding to criticisms characterizing such schemes as speculative, Hubertz told the “Tagesspiegel” newspaper that such concerns represent outdated perspectives.
She highlighted the successful implementation of equity-linked pensions in Scandinavian countries, asserting that they are not inherently risky. Hubertz emphasized the potential to utilize funds from pension reserves to invest in crucial infrastructure projects, including heating networks, housing and secure investments, ultimately benefiting the entire population.
Her remarks follow a previous attempt by the coalition government – known as the “traffic light” coalition – to establish a “generational capital” fund, a proposal that ultimately did not materialize. Hubertz reaffirmed her backing for this concept, arguing that it’s not solely about wealth redistribution but also about enabling a wider segment of the population to build assets.
Hubertz further addressed the issue of economic fairness, pointing out the disparity between individuals with the financial literacy and income to invest in exchange-traded funds (ETFs) and those who are either unable or unwilling to participate in private investment due to limited resources or a reluctance to engage with the stock market. She suggested that addressing this disparity should be a key consideration for the SPD.