The Greens want to improve the old-age provision in Germany due to a national civil Fund. This is the concept of party Chairman Robert Habeck, and the Green members of the European Parliament Sven Giegold, the TIME is ONLINE. Accordingly, the state should retain a certain proportion of gross salary of workers and in the Fund. The self-employed, freelancers and civil servants should voluntarily be able to Deposit. The Fund invests in equities, but also in not on the stock exchange traded equity.

The accumulated capital and the income in addition to the statutory pension will be paid out. The workers should at all times be able from the citizens ‘ Fund to get off. You need to decide but active for the exit – don’t do it for the pay. Up to a maximum amount, it should also be possible to volunteer more in the Fund than provided by default.

The Fund will passively invest – so in the intention of influencing business decisions. The administration would Habeck and Giegold in the hands of the German Bundesbank, “because the independence of reason is bound by law”. The state should promote investments financially, but not have access to it.

funds. in social and ecological projects

The Green politicians want to also set up an ethics Commission, sets the criteria according to which the Fund will invest only in ethical, social or ecological projects Example of the Norwegian sovereign wealth Fund. “We support the ecological conversion of the economy and the phasing out of fossil fuels,” write Habeck and Giegold.

The Fund will diversify its investments broadly, in order to reduce the risk that the value of the investment drops. So, even people with little money could benefit, “without great risk” of investments with a high rate of return. Independent experts to oversee the work of the Fund management. Investors can also opt for an Option with more risk and an expected higher rate of return. The automatic choice, but the low-risk base product.

The concept is based on citizens ‘ Fund in the Scandinavian countries, which work in a similar way. It is not a reaction to the fact that the state-subsidised Riester pensions shows the expected effect. The number of Riester contracts has stagnated Habeck and Giegold, for years. Riester is not attractive because the yields are low, the sales and administration costs are high and the interest rate guarantees are very expensive.

The Green politicians keep the citizens ‘ Fund for a more efficient, because the cost of advertising and distribution is largely accounted for. Moreover, size effects could arise, because by default, all employees contribute. Who have already a Riester or Rürup contract, could transfer the balances on the citizens ‘ Fund.

long-Term business strategies would be promoted

The Fund is also a “simple Alternative for occupational retirement provision”. Because of the many products in this range are often too complex for small and medium-sized enterprises. Overall, benefit the economy of the civil Fund, because it invests over the long term in companies and as a long-term business strategy. The counteract is also the “problem of concentration of economic Power of global firms such as BlackRock,” and helping to prevent financial crises.

Habeck and Giegold pointed out that there is public investment funds already in Schleswig-Holstein and Baden-Württemberg. Hessen had already made the proposal to establish such a Fund at the Federal level.