Investment: Banks Expect Huge Inflows from Retirement Savings Deposits - But Little Profit
By 2031, 150 billion euros could flow into retirement savings deposits. Banks are hoping for an investment boom. However, making money from it will be challenging for many financial institutions.
German banks and fintechs expect massive investments from private individuals in the capital market due to the introduction of a new pension depot from 2027. The depot will offer a state subsidy of up to €540 per year and a child allowance of up to €300. The industry expects huge inflows, with estimates suggesting that private customers will invest around €150 billion in the first five years, and annual net inflows of €26-56 billion.
The reform aims to replace the Riester pension and provide a low-cost, simple standard depot with costs capped at 1% of invested capital.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
