Business · Markets · 14 hrs ago
German professional pension funds face losses from failed investments
Professional pension funds in Germany invest contributions and pay retirement benefits to groups such as doctors, lawyers and architects.
They serve about 1.2 million members and manage roughly €300 billion.
A Metzler Ratings analysis found that failed investments, often in property projects, caused substantial losses at several funds.
The pension fund for lawyers in Hesse is writing off about €58 million invested in the Transamerica Pyramid renovation in San Francisco, but says this is less than 1% of its assets and promised benefits will not change.
The fund for Berlin dentists has written off more than €1 billion, over half its capital, after failed investments including luxury hotels and a shrimp farm; its 11,000 members face possible monthly pension cuts of several hundred euros.
Around 50 pension funds and church districts invested in Verius real estate financing funds, which have since been dissolved, leaving investors with losses.
Metzler Ratings also found that 76 of 92 funds did not fully publish their annual reports, and its chief executive called for a common set of financial reporting measures.
German professional pension funds have suffered major losses from failed investments, especially in real estate projects.
The pension fund for Hessian lawyers must write off about €58 million invested in San Francisco’s Transamerica Pyramid.
The Berlin dentists’ pension fund has written off more than €1 billion, over half its capital, after failed investments including luxury hotels and a shrimp farm.
Metzler Ratings found that around 50 pension funds and church districts invested in Verius real estate financing funds, which have since been dissolved.
Metzler Ratings’ chief executive criticized a lack of transparency, while the Hessian lawyers’ fund said its promised benefits would remain unchanged.
- Who
- German professional pension funds, including those for Hessian lawyers and Berlin dentists.
- What
- They face losses from failed investments, particularly in real estate.
- When
- The report was published on October 11, 2026; the investment losses occurred earlier.
- Where
- Germany, with investments including the Transamerica Pyramid in San Francisco.
- Why
- Rising construction costs, disrupted supply chains and higher interest rates contributed to failed projects; the article also cites a lack of capital-market expertise.
Hessian lawyers’ pension fund
Metzler Ratings and critics
Investment impact
Hessian lawyers’ pension fund
The fund said the write-off was less than 1% of its total investment capital.
Metzler Ratings and critics
Metzler Ratings reported widespread losses and criticized limited transparency across pension funds.
Member benefits
Hessian lawyers’ pension fund
The fund said promised benefits, including accrued entitlements and current pensions, would remain unchanged.
Metzler Ratings and critics
The article reports that Berlin dentists’ fund members face possible monthly pension cuts of several hundred euros.
Anyone who manages mandatory contributions must be at least as transparent as a pension fund
The Hessian lawyers’ pension fund invested in the renovation of the Transamerica Pyramid in San Francisco.
The Verius real estate financing fund was dissolved after pension funds and church districts had invested in it.
WirtschaftsWoche reported on failed investments and losses at German professional pension funds.
- Hessian lawyers’ write-off
- About €58 million
- Berlin dentists’ pension fund write-off
- More than €1 billion
- Hessian lawyers’ fund membership
- Nearly 26,000 lawyers
- Berlin dentists’ fund membership
- 11,000 members
- German professional pension funds
- 1.2 million members and around €300 billion in investment capital
- Verius funds’ investors
- Around 50 pension funds and church districts
Sources
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