As of: February 14, 2024, 9:13 a.m
By: Mark Stoffers
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There is great fear of poverty in old age among the younger generation.
The fear of downward mobility is particularly noticeable among women, so some are trying to lay the foundation for retirement planning early.
© IMAGO
Is the future of pensions on shaky ground?
The new generation of pensioners is apparently struggling with fears of relegation and poverty in old age.
Munich – For many young people, there is still a lot of time until retirement.
And yet, many potential pensioners already seem to be worried about poverty in old age, so that for some the motto when it comes to securing themselves for the future is: “Who knows whether there will be a pension later,” said one of the respondents to a street survey in Leipzig according to information from
Mitteldeutscher Rundfunk (MDR)
.
They are probably not idle, also because trust in the statutory pension does not appear to be particularly high.
Another respondent made it clear: “The statutory pension will probably become increasingly difficult in the next few years.
That's why I'm already thinking about it and taking precautions privately." A statement that only reinforces the picture that Generation Z, among other things, is not only concerned with their future pension, but also has foresight and is willing to take new paths.
After all, without far-reaching reform, pensions could be on shaky ground for their cohorts.
“State pensions will not be enough”: Pensioners of the future are taking new approaches to retirement provision
The federal government is not idle.
Labor Minister Hubertus Heil (SPD) has already announced a new pension package and pension reform with Pension Package II is one of the declared goals of the traffic light coalition in this legislative period.
But many doubt that it is enough.
As early as November 2023, the five economists called for a comprehensive restructuring of pensions and criticized the traffic light plans of the overdue pension reform.
In an interview with IPPEN.MEDIA,
pension expert Bernd Raffelhüschen
even assumes that there is no way around a pension at 69.
In view of this, future pensioners are apparently showing a keen interest in having their own pension and are also making private provisions in addition to a company pension plan.
“Young people are clear that the state pension will not be enough,” explained the Germany boss of Swiss-Life, Jörg Arnold, in an interview with Die
Welt
some time ago .
“Despite the higher inflation, they are therefore prepared to save additional money privately.
They are open to stocks, and the topic of sustainability also plays a role.”
Future pensioners and retirement provision: Not everyone is making provisions for their pension
But it's not just the current developments in Germany that are causing Gen Z to increasingly concern themselves with planning for retirement.
A US survey from November 2023 confirms that internationally, too, the new generation of future pensioners - who are otherwise always given a relatively lax assessment of their own pension provision - are thinking about their own pension much earlier.
However, not everyone is taking as much precaution as they should.
Christian Traxler, Professor of Economics at the Hertie School in Berlin, says at
mdr.de
: “The topic is definitely one that concerns young adults.
But the proportion of those who consciously make provisions for their old age is relatively manageable and stable over the years.”
“Collecting bottles in retirement”: Young women in particular fear poverty in old age
“On the one hand, there is great skepticism and also concern about the issue of poverty in old age,” explains Christian Traxler.
Despite the uncertainties, the statutory pension continues to enjoy the greatest trust of all pension options.
A lot of young adults and young people expressed their wish that the state would like to and should fix things.
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The topic of retirement planning appears to be playing an increasing role, especially among young women.
“How can I invest money now?
Oh, panic!
Inflation is too high and I have to collect bottles when I retire,” says Samira Harkat, head of the financial consultancy Feminin Finance in Leipzig, at
mdr.de,
giving an insight into the concerns about the risk of poverty and poverty in old age.
Despite the predicted “mega increase” in pensions: students in particular have doubts about its continued existence
Given inflation and the economic situation in general, optimism is probably rather sparse among retirees and prospective retirees.
Despite pensions that are due to increase in the summer of 2024 and an even more optimistic outlook from an expert who even suggests a “mega increase” in pensions, it seems to be primarily students who want the pension to continue until they start doubt.
While some could even see a pension increase of up to 7.5 percent in July, it is the younger generation of students who doubt that the pension will still exist when they are that old.