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[BUSINESS] · Germany · 28 sources

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Germany: Young adults lose trust in statutory pension system

A Forsa survey commissioned by ING Deutschland and Visa reveals a significant decline in trust regarding the German statutory pension system among young adults aged 18 to 30. Only 49 percent of respondents expect to receive a state pension, down from 56 percent the previous year. Furthermore, only 5 percent believe the statutory pension will be sufficient to maintain their standard of living in old age.

In response to concerns about old-age poverty, many in the 'Gen Z' demographic are turning to private provisions. Over half of those surveyed are already saving for retirement, with ING customer data showing that 47 percent of young depot holders use regular securities savings plans, primarily focusing on ETFs.

The German government is introducing a state-subsidized retirement savings depot scheduled for 2027 to encourage private wealth accumulation. While 65 percent of young adults find this model attractive, awareness remains uneven, particularly among young women. Other discussions regarding the German social system include proposals to reform widow pensions and the ongoing adjustment of the statutory retirement age, which is gradually increasing to 67 years.

Entities

Deutsche Rentenversicherung · Federal Statistical Office · Forsa · German Pension Insurance · German Trade Union Confederation · German government · Germany · Hanno Berger · ING Deutschland · Lars Stoy · Oberlandesgericht Frankfurt am Main · Sachsen-Anhalt

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6 days ago