Just last week, the new German government published its coalition agreement, offering a first glimpse into the proposed pension reform. At Upvest, we strongly believe in the power of investing. We… | Upvest
Just last week, the new German government published its coalition agreement, offering a first glimpse into the proposed pension reform. At Upvest, we strongly believe in the power of investing. We see this reform as an important step toward making long-term investing more accessible for everyone, and we’re excited to help shape this future. But first, what are the key changes you should know about the reform? While the information is held at a high-level for now, the following is proposed: 1️⃣ “𝐅𝐫𝐮̈𝐡𝐬𝐭𝐚𝐫𝐭-𝐑𝐞𝐧𝐭𝐞”: This government-backed pension provides €10/month for every child aged 6-18 (attending an educational institution) into an individual and privately managed retirement savings account. Private contributions can supplement this amount starting at age 18. The capital is protected from government access, ensuring payouts upon reaching the standard retirement age. Tax benefits will apply. 2️⃣ ”𝐑𝐢𝐞𝐬𝐭𝐞𝐫 𝟐.𝟎”: A revamped “Riesterrente”, or a retirement savings account that offers more flexibility (and hopefully, less bureaucracy) for a wider section of the population, with subsidies for small and medium-sized incomes. While the details are still unfolding, an investment offering seems to be at its core. Capital guarantee will be removed, allowing for potentially higher returns. All of this combined translates to lower barriers to entry, higher investment adoption, and improved retirement planning. Whatever the final product will look like – Upvest is perfectly poised to enable a fast, seamless, and low-cost investment offering: ✅ Broad investment universe: invest in stocks, ETFs, mutual funds, and much more ✅ Child accounts: open and fund a child account in seconds ✅ Fractions: start investing with as little as €1 ✅ Fully automated portfolios: set up a portfolio based on any trading strategy or risk appetite ✅ Regular product releases: be an early adopter and stay ahead of the trends (and regulations) The “Frühstart-Rente” is expected to come