Germany: bill to bolster occupational pensions published

Germany has finally unveiled a long-awaited draft law designed to bolster workplace pensions. Published at the end of July, the 'second law to strengthen occupational pension schemes' was drawn up by the country’s labour and finance ministries. The bill seeks to cement the role of occupational pensions as the second pillar of retirement provision, alongside the state system. It places particular emphasis on improving access for lower-paid employees, while also making it easier for small and medium-sized firms – and businesses not bound by collective agreements – to offer such schemes.

By Thomas Schnee. Published on 08 September 2025 à 14h02 - Update on 08 September 2025 à 14h02

For the current coalition of conservatives and social democrats, the idea is accepted that granting funding to company pensions is a preventive, more effective, less costly and economically more dynamic way of combating the impoverishment of the elderly. This vision is conditioned by the growing financial imbalances in the financing of German retirement insurance, at a time when the large age groups of baby-boomers are only just beginning to reach retirement age.

Massively extending the second pillar of occupational pensions

On 25 July 2025,…

Thomas Schnee

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