Deutsche Bank boss Sewing: retirement savings accounts as an opportunity for the economy

Starting in January, Germans will be able to start making provisions for their pension on the stock market through a retirement savings account. The Deutsche Bank boss hopes that this could mobilize savings - also for the benefit of the economy.

Deutsche Bank boss Christian Sewing sees great potential for retirement provision via the capital market.

Frankfurt/Main. According to Deutsche Bank boss Christian Sewing, more retirement provision via the capital market can also advance the economy in Germany and Europe. "Our problem is not a lack of capital. Our problem is that too little of it is working for long-term provision and long-term productive investments," said Sewing at a Bundesbank conference in Frankfurt.

With the retirement savings account, Germany is making an important change in perspective, said Sewing. Bundesbank Vice President Sabine Mauderer had previously said at the conference that, in her view, the pension reform had “the potential to be a real game changer”.

With the retirement savings account, savers will be able to make private provisions for their old age from January 1st through ETFs, stock funds and bonds. The state supports deposits with an allowance of up to 540 euros per year. There is an additional amount of up to 300 euros per child. Capital gains are not taxed during the savings phase. The idea is that people can make more provisions for their old age by investing in the stock market.

Compared to other countries, it shows “what potential Germany can still tap into,” said Sewing, referring to the USA and Great Britain, the Netherlands, Denmark and Sweden. “The success of our system will not depend on individual products, but on whether we create a system that makes capital market participation the norm for millions of people,” said Sewing.