New Germany fund: old -age provision at no high costs!

New Germany fund: old -age provision at no high costs!

Hessen, Deutschland - Today is June 26, 2025, and the topic of old -age provision is very popular. The state government of Hesse has decided to support reforms to promote private pensions, which in particular take the concerns of savers in terms of excessive costs and guaranteed returns seriously. In a recent report by Hessen.de it is emphasized that high guarantee requirements often lead to investors foregoing attractive chances of winning, especially in global shares. Interestingly, it can be seen that the risk of stock systems is manageable in long -term investments.

A central concern of these reforms is the creation of the Germany fund, a new, private -sided product that is under public supervision. This should serve as a standard offer and create a benchmark for other competing products. The aim is to protect the savers from overpriced products that have often been criticized in the past. In the original form of retirement provision, savers not only expressed concerns, but also difficulties to make decisions. Many push the topic of old -age provision in front of them, which is a great risk, as described by the experts from hessen.de.

The supply gap: A serious problem

Reality for many employees is that the statutory pension often only covers between 55 and 70 percent of the net wage. This means that a clear supply gap is created here. According to the Deutsche Bank, at least 30 percent of the income must be invested in old pension in addition to the statutory pension in order to be able to keep the usual standard of living in old age. It is all the more important to form reserves regularly and early. Smaller amounts are also helpful if they are consistently saved.

Risks and opportunities of private pension schemes

As the Stiftung Warentest shows, private retirement provisions in Germany play a major role, especially life insurance companies that are often offered by large providers such as Allianz or Debeka. In recent years, however, low interest rates have made these offers more unattractive. Life insurers face the challenge of offering classic products that are still attractive.
Fund -bound pension insurance, although they offer less security, could be a solution because they promise better return opportunities. Here, however, it should be ensured that such products are often associated with higher costs that can reduce investment success.

Expert: Inside, it also recommends that you prefer to invest in an ETF savings plan than in less transparent mixed products. Careful preparation and understanding of your own needs can be crucial. The taxiveness of the returns is another advantage that should not be underestimated.

Finally, it can be said that the reforms for private pension in Hesse can be seen as a step in the right direction. They offer a chance for savers to secure themselves better and to invest in a targeted manner in their future. Because the greatest risk is not to start in time.