"Authorities are encouraging Riester pension holders to move aside"
In the ever-evolving landscape of retirement provision, Sebastian Mentel, a prominent figure in the industry, is advocating for change. His company offers two alternative products: the Komfort Depot and the guarantee-free basic pension Komfort.
The Komfort Depot, available through Softfair's intermediary software and e-signature, boasts 25 products, focusing on broadly diversified portfolios and a minimum term of five years. Unlike the basic pension Komfort, which has been offered in the first layer of retirement provision since 2018, the Komfort Depot allows customers to manage both actively and passively managed funds, with regular payouts via withdrawal plans with the investment pension.
Mentel has been vocal in his opposition to the view that investment savings cannot serve retirement provision. He finds the Riester reform, part of the current federal government's coalition agreement, ineffective, fearing discontent among savers. However, he sees opportunities for compromise in the future goals for pension policy.
The Riester pension reform, which was not implemented in the recently ended legislative period, is currently undergoing reform. The German government plans a broad pension reform as part of a "big pension reform" program announced in 2025. However, specific new product lines for state-subsidized retirement provision have not yet been definitively introduced, and the future of the Riester contract system remains uncertain amid calls for changes including occupational pensions and state-subsidized private pensions.
Mentel suggests the idea of a state fund modeled on Sweden as an alternative to the Riester pension, but expresses skepticism towards state management of funds due to past poor decisions. He welcomes sensible changes such as more flexible guarantees in the current pension system and the discussion about capital market-oriented old-age provision sparked by the idea of a state fund.
Consumer advocates are also advocating for a state fund as an alternative to the Riester pension. Mentel finds it interesting that Sweden is considered a model for pensions, but notes that private companies like Biontech have also made significant contributions in this area.
The savings amount in the digital pension account, which does not include classic fund savings plans, can be paid out earliest from the age of 60, considered 'retirement-near'. Unlike the Komfort Depot, the Basis Rente is considered the one-eyed among the blind when it comes to the option to change providers or tariffs.
The option to change providers or tariffs is possible with the Rürup pension, but existing accounts in the Komfort Depot will need to have a specified contract term recorded retroactively if the customer wants to find their contract in the new pension account. At the target retirement age, a lifelong annuity begins for the Komfort Depot, with cooperation with the Alte Leipziger.
In conclusion, Mentel's company is proposing alternatives to the Riester pension, advocating for pension reform, and keeping an eye on the ongoing reform of the Riester pension system. The future of retirement provision in Germany remains uncertain, but with discussions and proposals like these, progress is being made towards a more flexible and effective system.
