DAV: considerable need for improvements to the draft reform of tax-incentivized private pension provision (pAV Reform Act)

On October 18, 2024, the German Actuarial Association (DAV) submitted a statement on the Federal Ministry of Finance's (BMF) draft bill for a law to reform tax-incentivized private pension provision (pAV Reform Act). The DAV supports the Federal Government's desire to strengthen private pension provision, but is critical of key points in the draft presented.

Dr. Maximilian Happacher, President of the DAV

The DAV emphasizes that the extension of state subsidies to payout plans and retirement savings accounts increases the risk that future pensioners will not be adequately protected in old age. “Only a lifelong pension payment offers the necessary security and provides reliable protection against poverty in old age,” says Dr. Maximilian Happacher, Chairman of the DAV Executive Board. Instead of individual payment plans that no longer guarantee an income after the age of 85, the DAV advocates greater promotion of collective solutions that ensure lifelong payments.

You can find more information on this topic in the pdf linked to the right and on our german website

DAV: considerable need for improvements to the draft reform of tax-incentivized private pension provision (pAV Reform Act)

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