Germany is on the brink of a significant reform in private pension schemes, as Finance Minister Christian Lindner proposes a new private retirement savings account.

This initiative aims to bolster private pensions by allowing investments in a variety of securities, including stocks, with tax incentives.

Under Lindner's plan, the government would contribute 20 cents for every euro saved, up to a maximum of 3,000 euros annually, potentially adding 600 euros to an individual's savings each year.

However, this proposal has sparked debate, with critics arguing that it primarily benefits financial investors and lacks guarantees for savers.

The German Trade Union Confederation (DGB) has voiced concerns, stating that private financial products should not be a core part of state pension policy.

The focus group on private pensions has also been criticized for not addressing these concerns, highlighting a divide between government plans and public sentiment.