Love Actuary #199 - German Pensions Reform – and what this means for insurers

Research evidence excerpt

Love Actuary #199 - German Pensions Reform – and what this means for insurers

J P M O R G A N Europe Equity Research

24 July 2026

Love Actuary

#199 - German Pensions Reform – and what this

means for insurers

• Germany is undergoing a major reform to its private individual pension European Insurance

AC savings law to replace the Riester system from 1 January 2027. This will Farooq Hanif

allow greater investment flexibility, removing the requirement to provide (44 207) 742-8091

guarantees and annuity income in the Riester pension. It will broaden the farooq.hanif@jpmorgan.com

proportion of the German population that can participate and create greater Kamran M Hossain

state subsidies and tax-free contribution levels. Insurers have traditionally (44-20) 3493-3780

dominated the Riester pension system given its focus on guarantees. However, kamran.hossain@jpmorgan.com

Riester policy numbers have been declining recently and the system is viewed Bingdi Fan, CFA

as low-return, complex and with overly-high charges. (44-20) 7742-5336

bingdi.fan@jpmorgan.com

• The new system creates some challenges for insurers, who could see greater Nadia Claressa

competition from neobrokers, direct banks and wealth management platforms. (44-20) 7134-7613

The standard default product will have a 1% annual charge cap (far lower than nadia.claressa@jpmorgan.com

Riester product expenses), with low upfront charges and an easier ability to J.P. Morgan Securities plc

switch, and there is greater flexibility to take income in retirement without

Specialist Sales contact details:

needing to purchase an annuity.

Gigi Sparling - Specialist Sales -

• However, we view this reform as a net positive for insurers. Existing Riester European Financials