Germany’s $400 Billion Pension Fund Eyes Capital Markets Boost
- Investing retirement reserves would break a German taboo
- Coalition parties seek to inject an initial 10 billion euros
This article is for subscribers only.
Germany’s future government plans to let the country’s pension system invest in the capital markets for the first time in what would be a small revolution in how Europe’s largest economy manages money for its growing ranks of retirees.
Negotiators for the Social Democrats, Greens and the market-oriented Free Democrats are seeking to hammer out details that would allow the $400 billion pension system to start investing some of its reserves into stocks and bonds, which would bring it more in line with other advanced economies.