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Fintech Coalition Pushes for Early Start Pension to Boost Germany's Pension System

The Early Start Pension aims to bolster Germany's struggling pension system. With support from prominent Fintech leaders and companies, this innovative approach could significantly improve the country's retirement prospects.

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1 min read
In the bottom right corner of the image there are steps with railings. And on the right side of the...
In the bottom right corner of the image there are steps with railings. And on the right side of the image on the floor there are pillars. Behind them there are cars inside the buildings. On the left side of the image there are lights and also there is ceiling.

Fintech Coalition Pushes for Early Start Pension to Boost Germany's Pension System

A coalition of over 30 Fintech companies, banks, and asset managers, led by Max Linden, CEO of lemon.markets, has called for the introduction of the Early Start Pension. This innovative approach aims to bolster Germany's pension system, which is struggling under demographic changes and a low statutory pension rate.

The Early Start Pension proposes a state-funded securities account for every child from birth. This account would be focused on the capital market, allowing for personal finance education and investment learning. Max Linden, a prominent figure in the German FinTech scene, believes this approach could significantly improve the pension system. He is joined by notable companies such as Raisin, Weltsparen, Scalable Capital, Commerzbank, DKB, Union Investment, and Deutsche Asset Management in this push.

To ensure success, clear principles are being advocated for. These include an automatic start for the accounts, a capital market focus for investments, a seamless transition between different life stages, flexible use of funds, and the option for voluntary additional payments.

The Early Start Pension is seen as a crucial first step towards relieving the pension system and developing it in a generation-friendly way. By leveraging capital markets, as seen in countries like Sweden, Switzerland, and Britain, this approach could help supplement the statutory pension, which currently stands at only 48% of the last net wage. Max Linden and his coalition believe that this innovative solution could help address the pension system's issues and prevent many from falling into poverty in retirement.

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