Reform of the Riester pension: High earners now also have their ETFs sponsored

A new model for private pension provision? Super! But the adopted reform favors the wrong people. There would be another way.

March 27, 2026, 1:31 p.m

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Article summary

The Bundestag is reforming state-funded private pension provision in order to replace the failed Riester pension. Despite new products, the reform remains complicated, inappropriate and expensive. Structural weaknesses have so far primarily benefited the insurance industry and disappointed savers. The reform creates more opportunities, but also more confusion and work for citizens. A more socio-politically consistent alternative would have been to strengthen the statutory pension.

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People should make private provisions for old age. The new products are likely to be particularly attractive to people with high incomes.
© Mischa Keijser/plainpicture

It’s done. More than two decades after the introduction of the Riester pension This Friday, the Bundestag reorganized state-sponsored private pension provision. The reform should Riester pension replace or fundamentally rebuild and enable private provision to restart with new products that are closer to the capital market. However, there is little that is really new about this reboot. Essentially, an old concept is being repackaged – with foreseeably similar side effects. The new package is also too complicated, unsuitable for many and probably too expensive.