Private retirement plans under scrutiny due to political tax policies.

In the political arena of Germany, the future of retirement provision is undergoing significant changes. Three major parties - The Union, The Greens, and the Free Democratic Party (FDP) - have proposed various reforms that could reshape the landscape of private and self-determined retirement provision.

The FDP is advocating for a tax exemption for capital gains from securities after a holding period of three years. This proposal aims to encourage long-term investment and foster a culture of equity-based wealth accumulation.

On the other hand, The Greens have proposed a more progressive approach. They want to link capital gains to an individual's tax rate while maintaining the current allowance. This move is intended to ensure fairness in taxation and encourage sustainable investment practices.

The Union, however, remains silent on the complete abolition of the existing tax exemption for sales of real estate and land after a 10-year period, a proposal put forth by both The Greens and The Left.

The current political landscape appears to threaten tax-funded private provision, a system that has been less emphasized in recent politics. The Union, in response, speaks of private provision on a trial basis, while the overall tone in election programs leans towards citizens entrusting their money directly to the state for capital investment.

The low-interest environment has led to a shift from interest-based to equity-based wealth accumulation, a trend reflected in the election programs. However, incentives for self-initiated private retirement provision are disappearing, according to some reports.

The Greens have proposed a citizen's fund intended to replace tax-privileged Riester and Rürup pensions. They also advocate for the complete abolition of the existing tax exemption for sales of real estate and land after a 10-year period.

The Union, on the other hand, wants to make capital-forming services tax-free after a minimum holding period and moderately increase the saver's allowance. If new promotion measures don't work, a transition to a state-organized standard product may occur. The Union even suggests that private provision is on a trial basis.

The SPD remains silent on the topic of capital gains, while the trend in retirement provision is towards state-based standard solutions. Despite this, all three parties support capital-based options in retirement provision.

The FDP advocates for a significant increase in the saver's allowance in a timely manner. The future of private retirement provision in Germany remains uncertain, with the parties yet to reveal their plans and future tax advantages for state-funded private retirement provision.