AllianzGI, Lurse launch occupational pension solution for SMEs

Allianz Global Investors (AllianzGI) has launched a new solution, the Allianz Plug-In Pension, aimed at streamlining the administration of occupational pension plans (Direktzusage) for small and medium-sized enterprises (SMEs) in Germany.

Developed in partnership with consultancy Lurse, the Allianz Plug-In Pension offers companies with at least 500 employees a broad range of options for designing customised retirement plans, including flexible contribution structures and payout choices, AllianzGI announced today.

The fund-linked pension plan invests employees’ contributions in equities and private markets at the start of their careers, gradually reducing risk as they approach retirement under a life-cycle model.

Custodian FNZ Bank has designed a private markets fund solution backed by AllianzGI to facilitate these investments.

Fund-linked direct promises have traditionally been offered by large corporations with in-house occupational pension expertise. Their complexity has often deterred SMEs, many of which lack the necessary resources and administrative support to implement such schemes.

AllianzGI said its digital Plug-In Pension platform removes the need for expert support, making implementation more accessible for SMEs. The offering could complement existing direct insurance policies and aims to deliver higher returns, particularly for executives.

With the launch, AllianzGI is seeking to tap into an underserved market. Occupational pension coverage tends to stagnate among SME employees.

According to the German Ministry of Labour and Social Affairs (BMAS), 74% of employees at companies with at least 1,000 staff participate in occupational pension schemes, compared with 61% in firms with at least 500 employees, and 60% in companies with 250-500 employees.

SMEs in Germany often favour pension arrangements with minimum guarantees, remaining cautious towards defined contribution (DC) models, AllianzGI said.

Michaela Sommer, director of corporate pensions solutions at AllianzGI, said: “AllianzGI has been managing life-cycle concepts for large companies as unit-linked direct promises for 20 years. Together with Lurse, we are now making this [offering] and our innovative investment concept accessible to a broader corporate landscape.”

Adelheid Lanz, manager, business development, at Lurse, added that the firm is observing significant interest from small and medium-sized companies in high-yield and attractive pension solutions.

“Allianz Plug-In Pension offers these companies the opportunity to build a modern pension plan with fully digital administration process and a user-friendly employee portal for the first time,” she noted.

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