Corporate Pension Schemes 2026: Why SMEs Need to Act Strategically Now
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In this VEDRA Pensions interview, Cordula Vis-Paulus, a corporate pension expert and initiator of the German Equal Pension Symposium, discusses the current challenges facing corporate pension schemes (bAV), especially for small and medium-sized enterprises (SMEs). While large corporations are grappling with historical legacy commitments and complex transformation processes, SMEs have the opportunity to design innovative, targeted solutions. But how can corporate pensions in SMEs be implemented and used as a strategic lever for employee retention and social responsibility? Cordula Vis-Paulus, a highly sought-after speaker at the 2025 Handelsblatt Annual Corporate Pension Conference, addresses the most pressing issues and explains why corporate pensions in 2026 must be about more than just compliance.
1. Are corporate pension provisions in SMEs the same as in large, traditional companies? If not, why is this difference important?
I don’t think so! Large corporations often have a significant backlog of legacy commitments. These need to be financed and transferred into current legislation, balancing risk and performance expectations. In other words, corporate pensions in large companies are often characterised by historical burdens in the form of complex commitments that must be transferred into modern law and managed in a risk-appropriate manner. In my experience, the focus here is on balancing return expectations, regulatory requirements and fairness towards new employees, who may envy the more attractive legacy commitments.
SMEs, on the other hand, have no such legacy burdens; they can can start afresh, so to speak, on a 'greenfield site'. Direct insurance as an entry-level solution frees up liquidity and enables management to focus on what matters: bespoke commitmentsthat cater for the needs of young talent. Without the obstacles of collective bargaining agreements or works councils: All you can Pension & Benefits!
When we talk about'corporate pensions' in Germany, we usually mean: 1) the legacy commitments of large corporations and their manoeuvrability; and 2) the lack of corporate pension offers and users in SMEs, meaning corporate pensions don't even exist in SMEs.
What does this mean?
- Let’s embrace flexibility. There are no 'one-size-fits-all' solutions, but rather modular models (e.g. matching contributions and low-income support).
- Don’t forget: Employer branding: a modern corporate pension shows that you are investing in your employees' future. This is a decisive but often underestimated factor in the war for talent.
- What matters to SMEs: smart handling with no liability!
- What matters to employees: Automatic enrolment, clear and comprehensible contracts, a personal contact for queries, portability and continuity with the next employer. For ETF-savvy Gen Z, it's about having an overview like Trade Republic's and transparent, low costs.What does this mean?
2. You always mention the blind spot. Why is it so important to talk about the pension gap?
In my opinion, the real discussion must focus on three core questions.
- How large is the individual pension gap? (Spoiler: For those earning less than €3,500 gross, it’s an existential threat.
- How much needs to be contributed monthly to close this gap? Realistic calculations are often lacking, even in consultancy.
- How robust are the assumptions? What would happen in the event of a payment stoppage, market crash or part-time phase?
So, it’s not about corporate pensions per se; it’s about the gap they’re supposed to close. There are several ways to address this:
- Create transparency: Tools such as pension gap calculators (e.g. those provided by Deutsche Rentenversicherung or the Institute for Provision and Financial Planning) should be incorporated into corporate pension consultancy services.
- Risk education: Employees need to understand that an ETF savings plan is not a substitute for a corporate pension, especially in old age when stability takes precedence over opportunities for growth.
- Target group focus: Part-time workers, low-income earners and women (keyword: gender pension gap) require automatic enrolment models (opt-out instead of opt-in) and employer contributions that are not dependent on full-time employment.
My provocative thesis is: Anyone who is still discussing whether corporate pensions are worthwhile has not understood the legislative mandate of 2002. Corporate pensions are intended to compensate for the declining level of pensions — not to be open to debate. The real question is how to make them accessible to everyone.
3. Who is being left behind? What invisible risk groups are there, and how do you experience them in your daily consulting work? Who do we need to pay special attention to?
We need to pay special attention to anyone who, based on their current income, is likely to receive a pension below the poverty line in the future. If you analyse the figures from the Federal Statistical Office, several criteria emerge:
- Part-time workers (10.8 million): '99%' earn less than €3,500, especially affected are mothers and young women.
- Typical 'women's professions' (nursing, retail) and migrants rarely have access to financial education or lobbying.
- Employees in small and micro-enterprises: They often have no access to a corporate pension scheme, even though they need protection the most.
Therefore, we are talking about employees who have below-average access to financial education and who are unaware of the risks and opportunities. They also rarely have a lobby to advocate for them.
There are already many discussed solution approaches:
- Automatic participation: Opt-out models increase coverage by up to 40% (OECD studies).
- Low-income support: Employer contributions granted regardless of gross salary level. (§ 100 EstG)
- Communication at eye level: “What happens to your pension if you work part-time?”—such questions must be asked proactively.
4. What is the goal of the German Equal Pension Award? The application deadline, what does the German Equal Pension Award 2026 want to achieve?
The GEPS Award 2026 aims to send a signal: Pensions matter to people. Young people! Those who advocate for pensions want solutions! Those who want solutions cannot avoid corporate pensions—if done right. Done right means inclusive and appropriate.
The GEPS Award aims to showcase companies that are already successfully setting these signals and serve as role models.
I know that my clients' employees interpret the design of corporate pension schemes as an indication of how the company treats its employees.
A company that commits to its employees' pensions, health and financial resilience sends a clear message:
"You are seen here," "We take care of you," "We won't leave you on your own.".
Employees trust this and build their families and livelihoods on it. The result is employee retention.
What I’ve learned: It's not a company's pension scheme that makes it a good employer. Rather, it's... A good employer always offers a good pension scheme! Some employers have realized this over the years.
With the German Equal Pension Symposium®, our industry is sending a special message: The German Equal Pension Award® 2026 honors companies that take responsibility.
Responsibility for employees.
- Those who cannot, or can only with difficulty, reduce the pension gap through suitable retirement provision on their own.
- Because they provide information. What will happen to your finances when you can no longer work? What would happen to your retirement provision if you reduced it? What will happen to your pension if you switch to part-time work? How can you prevent this?
- Because they support you financially. Grant employer contributions regardless of the number of hours worked.
- Because they offer low-income support. Matching models that also consider the income situation of those who are most vulnerable.
- Through inclusion: Automatic enrolment with an opt-out option instead of a difficult-to-overcome opt-in option.
- Through action: Recipient-appropriate, proactive and approachable communication.
- By consciously considering part-time employees and low-income earners in their concepts and enabling solutions for these marginalized groups..
The GERMAN EQUAL PENSION AWARD® makes responsible companies visible. Leading by example.
All companies based in Germany can apply now: https://forms.gle/Y7CGN3anNtgQmFeW7
More information: Handelsblatt online(German Equal Pension Symposium®: Altersvorsorge-Award) and at www.GermanEqualPensionSymposium.de
5. If you had to sum it all up in one sentence, what would your conclusion be?
Regardless of company size, my conclusion is that corporate pensions must be an integral part of a company's compensation and benefits package. On a personal level, it is important to understand that the three layers of retirement provision complement each other, rather than competing with each other.
Corporate pensions in 2026 are not an end in themselves, but rather a means of achieving social sustainability for companies with a long-term outlook. All companies, from SMEs to established corporations, have the opportunity to be agile, inclusive and purposeful. The question is not whether they will seize these opportunities, but how.
Thank you very much for talking to us!