According to a survey commissioned by the online financial portal Finanztip and reported by the “Süddeutsche Zeitung”, nearly a quarter of working-age adults in Germany make no private provision for their old age, relying solely on the statutory pension.
Of those who do make private provisions, the most common method is to use a daily or term deposit account, which often yields little return. More than half of German adults (57 percent) express concerns about the possibility of poverty in old age, with only a quarter not being worried at all or only slightly so.
Germany’s pension levels have been declining over the years and private provision through the so-called Riester pension was intended to offset this. However, this model has failed to gain traction, particularly among low-income earners. Political parties are now promoting various reform models.
“It is essential to take action and not wait for political reforms, which can take years” said Saidi Sulilatu, editor-in-chief and managing director of Finanztip, to the SZ. Finanztip has developed recommendations for providing for old age with little effort and the help of simple rules, with over 900 variations considered. Depending on age and income, individuals can determine a monthly rate for old-age provision.