Finance Minister Bayaz advises investing in the stock market: article analysis and expert opinion

Finance Minister Bayaz advises investing in the stock market: article analysis and expert opinion

According to a report by www.stuttgarter-nachrichten.de, Finance Minister Danyal Bayaz warns that the pension fund is coming under pressure due to demographic developments. He calls on citizens to invest in stocks to protect themselves in an aging society. According to Bayaz, the equity culture in Germany still needs improvement, as only 18.3 percent of the population aged 14 and over own shares in companies or equity funds. In Baden-Württemberg in particular, share-owning citizens are the most common, with a share of 24.5 percent of the total population.

To improve retirement planning, Bayaz recommends investing in sustainable and passively managed index funds (ETFs). He emphasizes that despite the risks associated with stocks, private retirement provision is important given demographic developments. He also calls for the introduction of a Germany pension as a public, broad-based, passively managed basic product in which citizens can participate with small monthly amounts.

The government also plans to include the stock market in securing pensions for the first time by investing 10 billion euros from public loans on the capital market. The resulting profits should help take the pressure off the pension system.

These efforts by Finance Minister Bayaz and the federal government are expected to have an impact on the German stock market. With increasing demand for stocks and ETFs, the stock market could revive and lead to positive developments. The introduction of a Germany pension could also help people with lower incomes invest more in retirement provision. In the long term, this could lead to a broader diversification of investor portfolios and strengthen the financial industry as a whole.