{"id":22756,"date":"2025-02-27T16:21:00","date_gmt":"2025-02-27T15:21:00","guid":{"rendered":"https:\/\/unequity.com\/kapitalmarktorientierte-bav-das-ende-der-heiligen-kuh\/"},"modified":"2026-03-06T03:00:10","modified_gmt":"2026-03-06T02:00:10","slug":"capital-market-based-pensions-the-end-of-the-sacred-cow","status":"publish","type":"post","link":"https:\/\/unequity.com\/en\/capital-market-based-pensions-the-end-of-the-sacred-cow\/","title":{"rendered":"Capital market-based pensions\u00a0\u2014\u00a0the end of the sacred cow?"},"content":{"rendered":"\t\t
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The company pension scheme in transition<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The traditional company pension scheme\u2014in Germany, the betriebliche Altersversorgung (bAV)\u2014is on the verge of change. Often referred to as a “sacred cow” in Germany, companies have often been reluctant to adjust pensions, as employees frequently suspect this to be a cost-cutting measure, and a clear disadvantage for them.\u00a0<\/span><\/p>

However, in times of demographic change and a changing pension system, modern company pension models offer new opportunities for employers and employees. It’s a topic that requires good communication.<\/span>
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The future of pensions: Turning challenges into opportunities<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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While the traditional pension provision faces challenges, this opens the door for forward-looking solutions. Capital market-based company pension models are a promising alternative. They enable organizations to offer their employees attractive pension options, while taking advantage of the benefits of the capital markets. It also gives companies greater financial flexibility. According to a recently published study by Willis Towers Watson\u00b9<\/span>, further reforms are needed to achieve this\u2014which depend on political will\u2014 to allow for the creation of a legal framework that considers opportunities and risks equally.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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The company pension scheme: What employees really want<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Company pension schemes\u2014sometimes called occupational pensionschemes\u2014are growing in importance as a key component of pension savings. According to the latest issue of Comp&Ben Magazine 2025\u00b2<\/span>, for many employees, this is the best way to save for retirement. However, expectations of company pension schemes have changed.\u00a0<\/span><\/p>

Employees want protection from inflation, asset security, and flexibility. Companies are responding with higher-return pension offers, which often come with reduced guarantees. A recent study\u00b3<\/span> shows that employees are increasingly prepared to forego guarantees in exchange for better potential returns.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Capital market-based company pension schemes: Potential returns and risks at\na glance<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Capital market-based company pension models offer the potential of higher returns as they invest more heavily in shares and other securities.<\/span><\/p>

For the workforce, this can mean additional profits, and from the company perspective, it creates financial planning flexibility that can be used for strategic tasks.\u00a0<\/span><\/p>

However, these systems are also exposed to greater market fluctuations and must be carefully planned in terms of the risk\/reward balance.\u00a0<\/span><\/p>

The benefits and risks to consider:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Opportunities<\/h3>