Many people in Germany would like to save more for old age, but cannot afford it. Not much is expected from politicians when it comes to this topic.
According to a survey, the sharp increase in inflation is dampening the private pension provision of people in Germany. Almost a third (32 percent) of around 2,000 respondents have made less provision for retirement since the start of the Ukraine war and the rise in inflation than before.
Just as many said they were not saving for retirement at all, according to the survey by the opinion research institute YouGov on behalf of the insurance group Axa. More than half (59 percent) said they would like to take more precautions, but they couldn’t afford it financially.
According to this, 15 percent of those surveyed said they put less than 100 euros per month into private pension provision. Just as many invest between 100 and 200 euros. Ten percent save 200 to 300 euros per month for their own retirement and 9 percent save more than 400 euros.
No trust in politics when it comes to pensions
The expectations of politicians when it comes to pension provision are not too great. More than two thirds (67 percent) of those surveyed in September said they had lost trust in politics on this point. At 72 percent, the proportion is highest among those over 55 years old.
Consumer advocates, among others, have been calling for a comprehensive reform of private pension provision for years. A commission set up by the federal government presented proposals on this in the summer. Accordingly, products with lower guarantees and higher return potential could also be offered in the future.
In addition to an insurance model, customers should also be able to choose a retirement savings account in which the money is invested, for example, in exchange-traded index funds (ETFs). Existing Riester contracts should continue to apply – unless all contracting parties agree to a change.