Berlin, March 27, 2026 — The Bundestag has approved replacing the long-criticized Riester private pension scheme with a new state-backed savings model designed to be simpler, cheaper and more attractive for savers, particularly low-income workers and families.
Lawmakers said the reform will phase out new Riester contracts and establish a redesigned third pillar of retirement provision to sit alongside statutory and occupational pensions. The Riester scheme, introduced in 2002, has been widely criticized as complex, costly and delivering limited benefits for many contributors.
Key elements of the reform include:
– Simplified and higher state subsidies, aimed at making saving worthwhile “from the first euro.”
– Expanded eligibility to include self-employed workers.
– Streamlined rules to cut costs and reduce administrative complexity.
– A planned “starter pension” in which the state would deposit about €10 per month into accounts for children and young people; the finance ministry is due to publish further details soon.
Finance Minister Lars Klingbeil described the package as a “real milestone” and a “game changer” that strengthens private retirement provision and broadens access to effective saving.
The governing SPD–CDU/CSU coalition backed the reforms. The Left Party opposed the measure, while the Greens and the far-right AfD abstained.
Political context
The vote comes amid a run of electoral setbacks for the center-left Social Democrats (SPD). Party leaders held a crisis meeting after recent state and local losses; the leadership said it would not resign but vowed to push for reforms within the coalition to halt the party’s decline ahead of further regional contests this year.
Other developments in Germany on March 27, 2026:
– Former Red Army Faction member Daniela Klette, 67, was charged by federal prosecutors with serious crimes tied to attacks in the early 1990s, including attempted murder, involvement in explosive attacks, kidnapping for extortion and aggravated robbery. A Frankfurt court will decide whether and when to open trial proceedings. Klette is already on trial in a separate case over robberies alleged to have financed a life in hiding; she was arrested in Berlin in February 2024.
– State-owned rail operator Deutsche Bahn reported a €2.3 billion net loss after writing down the value of its long-distance unit, citing a €1.4 billion reduction in expected value for DB Fernverkehr. The company said the sale of DB Schenker removed a profit source even as it helped reduce debt. CEO Evelyn Palla said a turnaround has begun but warned it could take at least a decade to fully restore the rail network.
– A humpback whale that had been stranded on a sandbank off the Baltic coast near Timmendorfer Strand was freed after several days of rescue attempts and swam back to sea.
These developments mark a moment of policy change and political challenge in Germany as lawmakers move to address long-standing problems in retirement provision while parties confront electoral pressures.