German pension reform stagnates

Investment by German pension savers in the country's defined contribution Riester funds has stalled this year with just 29,000 new contracts being signed compared to 72,000 last year.

Riester funds, named after the German employment minister Walter Riester, combine a defined contribution savings structure with a guarantee on invested capital. The German government launched the fund system in 2002 to ease the burden on the state pension system.

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