Despite a slight rise in interest, many Germans remain reluctant when it comes to planning for retirement, according to a new survey conducted by the Federation of German Banks, reported to the Funke media group. While overall interest in investments and financial matters has increased, a significant number of respondents still avoid tackling these financial topics.
The survey found that only four out of ten non-retired Germans are currently seriously engaging with their retirement planning. The Bank Federation notes this represents a small increase compared to 2024 (35%), though planning interest fell sharply in the years preceding that. In contrast, the height of focus on personal finances was observed during the COVID-19 pandemic; in 2020, about 56% of working respondents reported seriously addressing retirement planning.
The uptick in interest comes at a time when the German government has placed renewed emphasis on private retirement savings. Recently, the Bundestag passed legislation supporting a state-subsidized retirement savings account, and measures were also agreed upon for early retirement entitlements, allowing children to receive start capital for their private savings.
However, the financial standing of an individual remains a critical factor in whether they even begin the conversation. The results show that people who describe their own economic situation as (very) poor plan for retirement much less often (25%) than those who are financially stable (64%). The Bank Federation notes that this pattern means the very group for whom systematic planning is most crucial is the least likely to engage with it.
On a related note, the majority of Germans generally feel competent regarding financial matters, with nearly two-thirds of respondents (65%) stating they are (very) knowledgeable about finances. This self-assessment suggests greater confidence in personal financial knowledge compared to previous years. There is a trend toward younger people feeling quite informed about money matters, though those between 18 and 29, who show higher levels of interest, reported that over half (55%) had only been paying attention for two years. Nevertheless, the awareness of the term “rent gap”-the difference between one’s last net income and the statutory pension-only reaches about one in two people (54%) in this younger demographic, while overall, 62% of all respondents know the term.
Ultimately, the Bank Federation concludes that much work still needs to be done to bring private retirement savings to broader segments of the population. “The numbers show: For many working people, retirement savings is still a distant concern” stated Heiner Herkenhoff, Managing Director of the Bank Federation. He emphasized that only preemptive and sufficient planning will ensure a secure financial future later in life. The Federation conducted the study between January 29th and February 13th, surveying 1,303 individuals.
