Rente: Walter Riester kritisiert neue Altersvorsorge

Walter Riester, the namesake of the "Riester-Rente," has criticized the new pension plan proposed by the German government. Speaking to the Frankfurter Allgemeine Sonntagszeitung, Riester argued that the coalition should have made contributions mandatory. He believes mandatory participation would lower distribution costs and address the issue of competition between saving for retirement and immediate consumption. Riester fears that without mandatory private savings, some individuals will face poverty in old age because the statutory pension will be insufficient. The 82-year-old, now retired from politics, expressed his dissatisfaction with the voluntary nature of the new model.