Private retirement plans are being eroded by the proposed tax policies.

In the recent 2021 elections, several German political parties have proposed significant changes to the way old-age provision is handled, with a notable trend towards state-wide solutions and capital-based options.

The Union, Greens, and FDP have emphasised the role of capital-based provisions more than ever before, advocating for various strategies to encourage wealth accumulation. The FDP, for instance, supports tax exemption on capital gains from securities after a holding period of three years, and has proposed a significant increase in the saver's allowance. The Union, on the other hand, wants to make gains from wealth-building services tax-free after a minimum holding period and moderately increase the saver's allowance. Both parties also favour promoting a capital market-based private old-age provision.

The Greens, meanwhile, have proposed more radical changes. They want to link capital gains to an individual tax rate while maintaining the current allowance, and plan to replace tax-favoured Riester and Rürup pensions with a citizen's fund. In a bid to address housing market concerns, the Greens have also advocated for the complete abolition of the existing tax exemption for sales of real estate and land after a 10-year period.

The SPD, however, has not made any clear statements regarding saver's allowance or capital gains tax, nor has it outlined specific plans for reforming the tax-privileged private old-age pension financing system. The party has, however, expressed a desire to reform state-funded private old-age provision in partnership with the Union.

The Union and SPD also speak of private provision on a trial basis, and if new support measures fail, a transition to a state-organized standard product would occur. The exact plans for this reform are unknown at this time.

It's important to note that while reform discussions have been more prominent in later election cycles, no parties in the 2021 election programs had detailed plans to reform the tax-privileged private old-age pension financing system. Citizens could still benefit from tax advantages through special expenses deductions.

The low-interest environment is leading to a shift from interest-based to equity-based wealth accumulation in election programs, and incentives for proactive provision are disappearing, according to the text. This suggests a shift in focus towards long-term investments and away from traditional savings methods.

Politicians have different views on encouraging citizens' wealth accumulation behaviour, and the future of old-age provision in Germany remains a topic of ongoing debate and discussion.