For many people, the pension alone will hardly suffice for the usual standard of living. However, a large proportion of Europeans do not provide for private retirement. This was the result of a survey by the European insurance association Insurance Europe. According to the information, 10,142 employees in ten countries were interviewed, including Germany. 43 percent of the participants between the ages of 18 and 65 stated that they would not save with additional supplementary pension schemes for old age. The main reason: too little income.
Retirement provision is too expensive for many people
42 percent of non-savers said they could not afford private pension provision. 28 percent said they were not interested in it. Every fifth planned additional protection. Ten percent answered “don’t know”. At 47 percent, women were more affected than men (40 percent). The same was true for younger people between the ages of 18 and 35 (47 percent) and employees with little education (50 percent).
Participants were also asked what is most important to them when investing in old age. It became clear that security and flexibility play a much larger role than the question of whether the investment will generate a return.
That has to offer private pensions
This is what Europeans are primarily looking for in their pension savings plan:
- Security: 60 percent
- Flexible savings rates: 33 percent
- Legacy left: 32 percent
- Liquidity: 32 percent
- Cost: 28 percent
- Tax savings: 26 percent
- Simplicity: 20 percent
- Yield: 14 percent
- Sustainable investments: 12 percent
- Transferability: 10 percent
The need for security was particularly pronounced among women. 78 percent of them reportedly preferred safety to performance. This was only the case for 68 percent of men. The survey was conducted in August 2019 in these countries: Austria, France, Germany, Hungary, Italy, Luxembourg, Poland, Portugal, Spain and Switzerland.