Three out of ten 50-year-olds in Germany fear their financial future!

Three out of ten 50-year-olds in Germany fear their financial future!

Almost every third citizen over 50 in Germany is pessimistic about their financial prospects in retirement. These alarming findings come from a recent Opinion poll by Yougov Deutschland GmbH on behalf of Standard Life Insurance. Among the approximately 900 respondents who are about to retire or have already retired, one in three participants rate their financial security as poor.

16 percent were particularly critical of their retirement provision and rated it “poor.” 15 percent even perceive their financial situation as “inadequate.” This uncertainty regarding retirement provision is further reinforced by the expectations of those surveyed: 57 percent expect a “significantly lower” income in old age, while 24 percent expect a “slightly lower” income. In addition, 12 percent fear that their expenses will increase as they age.

Social concerns about retirement provision

Another survey conducted by GDV published shows that 53 percent of people of working age in Germany are worried about their retirement provision. This uncertainty is particularly pronounced among women (57 percent), while men are somewhat more relaxed (42 percent). Over a third of those surveyed cannot or only vaguely estimate their future income in retirement, which further fuels concerns.

The survey showed that around 20 percent of those surveyed are unsure whether and how much money they will lack for their desired pension. Almost 60 percent fear a pension gap of at least 250 euros per month. Almost a third of those surveyed estimate the pension gap to be 750 euros or more. Only 17 percent are optimistic and believe that they will not need any money in old age.

Retirement planning and preferences

The need for solid retirement planning is also reflected in the different approaches that those surveyed choose. A good 20 percent of those surveyed have no additional retirement provision aside from the statutory pension or pension. 37 percent rely on real estate, 30 percent invest in stock or bond funds. Company pensions are particularly common among older respondents, with 32 percent of 50 to 64 year olds using this form of old age security; among younger respondents between 18 and 29 years of age, the figure is only 18 percent.

Another notable result is that 23 percent of those surveyed use life insurance for retirement provision and 22 percent have a Riester contract. There are also gender differences here: women are less likely to have a company pension (24 percent) than men (30 percent), but rely more extensively on Riester contracts (25 percent for women compared to 19 percent for men). Jörg Asmussen, General Manager of GDV, emphasizes that it is important to make company pensions more attractive for small and medium-sized companies in order to close the security gap in pension provision.

Overall, it appears that many Germans, especially women, are concerned about their financial future in old age. Achieving sound retirement provision remains a societal challenge that must be addressed urgently.