The reform introduces a standardized pension product that all financial institutions must offer, featuring a cost cap of 1% and provisions for self-employed individuals. Additionally, a new ‘early starter pension’ for children will be established, providing state subsidies. Critics, including consumer advocates, argue that the proposed cost cap remains excessively high, potentially diminishing long-term savings. Existing Riester contract holders will have the option to retain their plans or transition to the new model without losing prior benefits.