Deutsche Börse chief calls for overhaul of Germany pension system

Deutsche Börse chief executive Stephan Leithner called for a sweeping overhaul of Germany's pension system, warning that rising budget transfers to shore up the state scheme are unsustainable.

"We can no longer stand by as more and more money from the federal budget are needed to plug gaps in the pension system," Leithner told dpa.

He said the statutory pension would remain one of three pillars of retirement provision, alongside occupational and private schemes, but argued that market-based savings must play a much stronger role.

Leithner said Germany's government had taken important steps, including plans for a state-backed investment account and an early-start pension scheme, under which children would receive monthly state contributions.

The bank boss expressed confidence that a government-appointed pension commission would build on these measures.

Leithner also called for a larger upfront contribution at birth, suggesting a one-off payment of €4,000 ($4,591) to take advantage of compound interest over time. He added that occupational pension schemes should be included in every employment contract.

German Chancellor Friedrich Merz has said the government aims to rebalance the three pillars of the pension system this year, with the commission expected to present reform proposals by mid-year.