Germans discover stocks as a retirement provision: Why they are right

Germans discover stocks as a retirement provision: Why they are right

According to a report from www.t-online.de, it is evident that more and more Germans are taking the initiative themselves when it comes to their retirement provision. Despite a slight decrease of 570,000 investors compared to the previous year, the numbers remain stable above the twelve million mark. Investors have internalized that stocks, stock funds and ETFs are essential for building wealth and planning for retirement. A broadly diversified stock portfolio brings an average return of six to nine percent per year in the long term.

It is clear that investors are increasingly convinced of the importance of stocks for their retirement planning. While politicians have continued to shift “generational capital” once again, many Germans are already successfully relying on funds and ETFs as a basic investment for their retirement provision. The number of investors in funds and ETFs is around 10.3 million, which is at the same level as the previous year. ETFs are particularly popular among younger people, with 35 percent of stock savers under the age of 40 saving with ETFs.

Savings plans that automate investing are also very popular. The results of such savings plans are impressive, as the statistics from the BVI Fund Association show. With an average return of 6.1 percent per year, you could turn 12,000 euros into 16,386 euros after ten years. After 20 years, 24,000 euros could become 48,951 euros, and after 30 years you could look forward to a sum of 111,275 euros.

These numbers clearly show that stocks, stock funds and ETFs can be a worthwhile investment for retirement planning. If only politicians would finally realize this! The introduction of savings plans with stocks, funds and ETFs could be an important step in the right direction to strengthen the German equity culture and offer citizens more financial security for the future.