The Challenges of Current Pension Policy
In Germany, company pension schemes (bAV) are increasingly discussed as an essential complement to the statutory pension. Given the challenges of current pension policy, such as the insufficient pension level and the rising retirement age, bAV represents an important option to ensure financial security in retirement.
Skills Shortage and the Role of bAV
The existing skills shortage could be mitigated by models such as the active pension, allowing retirees to remain in the workforce and earn additional income.
Advantages of Company Pension Schemes
Flexibility and Security
bAV provides flexible implementation options such as pension funds and direct insurance, helping to close the pension gap. It also offers security through guaranteed investment forms that many savers seek.
Tax Benefits and Subsidies
Tax incentives make bAV more attractive for employees, although reforms to adjust allowances are necessary.
Challenges and Necessary Reforms
The bureaucratic hurdles of bAV, such as the requirement for written form and adjustments to the company pension law, highlight the need for reforms. A government-supported auto-enrolment could also increase participation readiness.
Future Perspectives
Planned reforms in the coalition agreement and technological innovations, such as digital monitoring tools, could further enhance the attractiveness of bAV. These developments emphasize the forward-looking role of bAV as an integral component of retirement provision in Germany.
In summary, company pension schemes are a proven solution that stands out due to flexibility, security, and tax advantages, yet could benefit from further reforms to fully exploit their effectiveness.