2023-12-13 22:49:08
Many people are worried about the future and especially about their situation in old age. Inflation, falling real estate prices, numerous trouble spots around the world – all of this only increases the uncertainty. What types of precaution do Germans prefer in this environment? Have preferences changed? The trust of working people in their own four walls, which has long been the most trustworthy form of retirement provision for many, is visibly dwindling. Younger people in particular have concerns. These are the results of a representative survey by HDI Insurance. The pollster Yougov surveyed around 4,000 employees.
While in 2020 more than half of those surveyed were of the opinion that owning a home was the most reliable form of provision for old age, only 42 percent now say this. This equates to a decline of almost a fifth. Working people under the age of 45 seem to view the real estate issue particularly critically. Here only about one in three (37 percent) are confident. In addition to rising interest, renovation and construction costs, which are putting a strain on the current construction industry, the reputation of “concrete gold” as a means of providing for old age is also apparently suffering, especially among younger people, says Jens Warkentin, CEO of HDI Germany the real estate sector, which is under pressure.
Confidence in owning a home has dropped noticeably among “high earners” (net 5,000 euros per month and more) – from an average of 69 percent four years ago to 45 percent now. The loss of trust is also slightly higher among men than among women. Regional differences can be observed: Hesse has recorded the greatest loss of trust among the federal states (59 to 43 percent). Berlin, on the other hand, has by far the lowest value: only 31 percent of those surveyed there still have the greatest confidence in owning their own home for retirement provision.
Listed securities in second place
Despite this loss of reputation, according to the analysis, your own apartment or home remains the number one most trustworthy form of provision. However, within four years there have been significant changes and shifts in the group of the most popular forms. Listed securities such as stocks, bonds or funds are now in second place with a share of 22 percent; in 2020 they were 19 percent and (together with cash) in fifth place. In 2021 and 2022, the proportion of capital market securities was already higher. At 20 percent, rented properties are still in third place, just behind stocks & co.; at that time the share was still 22 percent.
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Possibly surprising for many in this context, cash (stable 19 percent) has moved up to fourth place, as private life and pension insurance currently has a share of 18 percent (then 24 percent and second place), as do company pensions and the statutory pension Respondents received less support than in 2020. Up to three mentions of investment options were possible.
Confidence in stocks, funds and bonds has grown
According to HDI Insurance, just as home ownership has lost trust for retirement provision, trust in stocks, funds and bonds has increased. Among those working under the age of 45, the increase was even greater than overall (20 to 24 percent). What is interesting, however, is that the increase is almost entirely due to the higher level of trust among men.
Among working women, however, this has hardly changed and is now only half as high as that of men. Nevertheless, around 38 percent of women are convinced that better long-term returns can be achieved with stocks than with interest investments such as savings accounts or fixed-interest securities. Among men, the proportion is higher at 56 percent, but not twice as high as when it comes to the question of trust. But it is always very individual anyway.
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