State pension: Almost every second person relies on the state for their retirement provision!

State pension: Almost every second person relies on the state for their retirement provision!

The topic of retirement provision is always hotly debated in Germany. According to a current survey by the Association of German Banks (BdB), in which 1,316 people aged 16 and over took part, almost half of those surveyed (46%) rely on government support in old age. This trust is particularly pronounced among those over 60, where it even accounts for 63%. But the younger generations are not entirely averse either: 44% of 16 to 29 year olds see the state as the most important component of their retirement provision. The question of the role of private and company pension options is becoming more and more common.

The state as support

A significant majority of 64% of those surveyed are of the opinion that the state is primarily responsible for financial security in old age. This could be an indication that many people are not satisfied with the German pension system, which they find to be “very complicated and opaque”. The young generation in particular shows a high need for information: 62% of respondents between the ages of 16 and 29 do not feel sufficiently informed about their financial possibilities and pension options. This could also be due to the fact that 81% of young people find the pension system unclear.

News from retirement planning

The idea of ​​a “stock pension”, which would use capital market investments to mitigate rising pension contributions, is attractive to 45% of those surveyed. Nevertheless, 42% of opinions are rather undecided, which indicates gaps in knowledge. The question of how exactly such a form of investment would work remains open for the time being.

It is also known that retirement planning in Germany has different facets. Statutory, company and private pension schemes offer different approaches to financial security in old age. On average, working life in Germany is around 39.6 years, followed by around 20.5 years of pension receipt. People over 65 receive more than half of their income from statutory pension insurance, where the standard monthly pension is currently 1,769 euros.

Private provision should not be neglected

Although many rely on government offers, over half of Germans still save privately for old age. Company pension schemes have a total of around 16.6 million contracts, with direct insurance making up the largest share - around 8.8 million contracts. The Riester pension, a state-funded form of private pension provision, is also relevant with over 15 million contracts concluded, but there is a decline here.

In addition, the real estate assets of private households in Germany are estimated at over 11 billion euros, which shows that many people rely on various strategies to financially secure their old age. However, the challenges that the pension system brings with it require a clear understanding and an informed decision for one's own retirement provision.

Read more about the current developments in the area of ​​retirement provision in the linked articles from insuedthueringen.de and find out details about stock pensions check24.de. For comprehensive information about retirement planning, also visit statista.com.