As countries around the world grapple with how to fund their aging societies and evolve their pensions systems, Germany’s answer is the Pension Level Stabilisation and General Capitalisation Act^[1].

Germany’s first pillar statutory pension insurance remains the most important component of its old-age security system.^[2] The draft legislation, introduced in March this year, aims to maintain the statutory pension benefit level (the Rentenniveau) at 48% of the nation’s average wage.^[3] To keep that level stable, the draft bill proposes the creation of a “generational capital” fund that would pursue a globally diversified investment strategy.

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