German employers and pension managers have expressed scepticism over the government’s planned early retirement pension, with many viewing the reform as lacking substance, according to a survey conducted at WTW’s occupational pension conference in Frankfurt.

Germany's coalition government has confirmed that the scheme will launch in 2026, providing €10 per month in state contributions to children in education (age six) until the age of 18 to an individual, funded and privately organised account.

The savings accumulated under this early start pension scheme will only be paid out and taxed upon retirement.

However, the live poll found that while 41 per cent of participants believed the proposal could help foster a stronger capital market culture, most doubted its effectiveness as a long-term savings vehicle.

Indeed, over a third (37 per cent) described the initiative as little more than “symbolic politics” with no meaningful impact, and just 11 per cent felt it represented a sensible addition to the retirement system.

Another 11 per cent said it was too early to make a definitive judgement.

The policy has already been questioned, with Deutsches Aktieninstitut (DAI) arguing that the planned reforms will only be effective if contributions begin at birth rather than at school age.

WTW Germany head of retirement, Hanne Borst, said that despite a wave of policy activity, the government’s approach remained "fragmented".

She warned that without a coherent strategy linking all three pillars of the retirement system, confidence in occupational and private pensions would continue to waver.

“If reforms are to restore trust, they need to be built on substance rather than symbolism,” she added.

Meanwhile, a second live poll revealed near-unanimous doubt about the Act to Strengthen Company Pensions II (BRSG II)

Almost all respondents - 98 per cent - said they did not believe the reform would meaningfully strengthen workplace pensions, with just 2 per cent expressing confidence in the proposed measures.

Echoing this, the Deutsches Aktieninstitut (DA) urgently called on the government to go further and implement additional reforms in old-age provision earlier this year.

The organisation appealed to the government to address the fundamental problems it faced and utilise the earnings potential of equities in all pillars of pension provision for the benefit of the people.

According to Borst, the poll results underscored employers’ frustration with overly complex regulations and their desire for bolder, more practical policymaking.

“Companies want lawmakers to show real courage in reforming the system,” she noted, adding that new rules should make occupational pensions easier to implement, not harder.

When asked what changes would make the biggest difference, more than half of participants (52 per cent) called for a reduction in bureaucratic barriers, while nearly a quarter (24 per cent) highlighted the need for lower guarantees.

Expanding opt-out models (18 per cent) and improving legal certainty to support better returns (6 per cent) were also seen as priorities.

Borst said the message from employers was clear: simplification and legal clarity are essential to unlocking the full potential of workplace pensions.

Only when schemes are straightforward, transparent, and easy to implement, she argued, can they effectively engage employees and deliver sustainable outcomes.

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