Despite several pension reforms currently being enacted by the German government, Deutsches Aktieninstitut (DA) has urgently called on them to go further and implement reforms in old-age provision.

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

Deutsches Aktieninstitut chief executive and board member, Henriette Peucker, stressed that "safeguarding future generations in old-age provision" was one of the most important tasks of the German government.

"Equities, equity funds and ETFs in all three pillars of old-age provision are the best chance for a pension that is fair to all generations," she added.

DA explained that last year, €116bn, or 25 per cent of the federal budget, was spent on stabilising the statutory pension.

At the same time, Germany is one of the few countries that does not make sufficient use of the capital market to finance old-age provision for its citizens, it added.

However, some reforms are underway: On 1 July 2025, the current pension value was increased from €39.32 to €40.79.

As a result, pensioners will then receive a 3.74 per cent increase in their pension.

The stop line, which determines the pension amount of an average pensioner in relation to the average income, is also to be maintained at 48 per cent until 2031, the result of a draft bill by the Federal Minister of Labour and Social Affairs, Bärbel Bas.

"The early-start pension planned by the German government is a first step in the right direction, Peucker declared.

"We also welcome the reform of the Riester pension planned by the coalition partners and assume that the goal of a new pension product is linked to the introduction of a retirement savings account.

Yet she emphasised that despite these measures, Germany still lagged "well behind" the international standard.

"The example of Sweden shows that old-age provision and the tax-subsidised investment savings account there are the levers for more volume in the capital market," she continued, adding that "the immense tasks of the future cannot be tackled with state special funds alone.

"A functioning capital market is also essential for this, and this requires further reforms," Peucker said.

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