This form of pension provision is at a record high

Germans appreciate them

This form of pension provision is at a record high

According to a recent study, retirement planning stocks are currently at record highs. Only one asset class is given greater credence.

According to a study, exchange-traded securities are more popular than ever as private retirement plans. Nearly 30 percent of workers in Germany rate this asset class positively, according to a survey published by HDI Insurance on Tuesday. Compared to 2020, this number has increased by half.

However, people still have the greatest trust in their own homes. 44 percent of about 3,700 respondents described it as suitable for financial security. Nevertheless, the results show “that the trend towards share-based concepts continues to increase,” said HDI board member Holm Diez.

The reason for this development is the prospect of higher yields, the study continues. More than half of respondents expect a higher rate of return compared to interest investments. At the same time, more than one in three people consider stocks inherently too risky. The study also shows clear differences between genders: While 34 percent of men rely on stocks and funds for retirement planning, that number relies on only 20 percent of women.

For the first time, consumer opinions on cryptocurrencies were also surveyed. Overall, Bitcoin & Co plays a small role as a means of providing pension funds at four percent. However, among workers under the age of 40, 26 percent view cybercurrency as a suitable means for earning retirement.

The results of this study come at a time when the federal government is debating the future of the pension system. The reform plan aims, among other things, to keep the pension rate stable at 48 percent. There was resistance to this from young members of the Bundestag from the Union faction. Another element is what is called early retirement. Young people should be motivated to take individual and personal precautions.

Munich economist Monika Schnitzer also supports state-funded retirement savings accounts so that poorer groups can also invest their money in capital markets. Retirement savings accounts can help, which can be used to provide private pension funds and asset accumulation to prevent poverty in old age. Independent authorities should select funds for standard products that offer high returns and do not have high costs, five federal government economists explained in a report presented last week.

One in ten people in Germany receives a gross pension of less than 300 euros per month. The President of the German Pension Insurance Association, Gundula Roßbach, recently highlighted this. 12 percent received between 300 and 600 euros and about 13 percent received between 600 and 900 euros.