The financial crisis has made many German women uncertain about provision for old age.
Around 40% of German women fear that they will have a lower standard of living during retirement, or even that they will be threatened with poverty. It is mainly young women who, much more than just a year ago, anticipate a lower standard of living in retirement.
But German women are doing something about it: for 57%, saving for retirement is a top priority. These are some of the findings from a representative survey carried out by opinion research institute TNS Infratest. The survey was conducted for the third time in the autumn of 2009 on behalf of the Wiesbaden-based financial service provider Delta Lloyd. A total of 1000 women aged between 18 and 50 years were questioned on pension provision in the course of the survey.
Fear of a lower standard of living
Fear of a lower standard of living or even of poverty in old age is widespread among women across the whole country, with 40% expressing this fear. Fear of financial losses in retirement has dramatically increased among women aged between 18 and 25.
However, almost 40% of this age group still fear that they will have a lower standard of living during retirement which, compared to 27.5% last year, shows an increase of 12.2%. Even school pupils are thinking more about their financial situation in old age. 8.5% fear old-age poverty, compared to just 1% in 2008. It is clear that awareness of this subject has increased.
Women in employment as well as housewives also worry about provision for their old age. At 48.5%, almost half of employed women surveyed fear a lower standard of living during retirement which, compared to 33.9% last year, is also a significant increase. We can only assume that the financial crisis and its effects on the job market have fuelled these concerns. Among German housewives, fear of poverty in old age has increased from 5.5% last year to 15.2% now.
Rethinking pension provision – partner’s advice less important
The financial crisis has also visibly led German housewives to re-examine their current provision. When asked whom or what they rely upon for private pension provision, 46.4% of women named their current pension plan, compared to 56.6% last year. At the same time however, 9.2% of all those asked did not give an answer, compared to just 5.3% in 2008.
Advice from partners is noticeably less frequently relied upon for financial matters. Just 16.7% rely on their husband or partner for pension advice, compared to 21.8% last year. Women would often prefer to seek professional advice. More than a fifth, 21.5%, go to a financial adviser to plan their finances for old age (2008: 19%).
One in five rely on the state pension
Just over a fifth (21.2%) of German women still rely on the state pension. This level has not significantly changed across Germany as a whole in recent years. However, there are some noticeable differences between the east and the west of the country.
The percentage of women in the west of Germany relying on the state pension has remained unchanged at around 21%, but for east-German women it is slightly higher at 24.7%. However, this is compared to 31.9% last year. The public debate on falling pension levels also seems to have had an effect here.
Home owning less important
To the question of what they had to save for the most, retirement was the clear leader with 57%. Over recent years, the importance of pension provision has become firmly rooted in women’s minds and is continuing to increase in importance. Home owning has on the other hand been put to one side. Whereas in 2008 10.3% of women surveyed still thought it was important to save for their own four walls, the figure has now fallen to just 5.3%.
On this matter, Sabine Peters, pensions expert at Delta Lloyd, says: “The financial crisis has possibly altered priorities here. Women are clearly setting the right priorities by focussing on providing for their retirement. Property can also make a good addition to this provision, but a comprehensive financial plan should always be the foundation.”
There are some significant differences between the east and west when it comes to preparation for retirement. Among women in the west, it is clear that the importance of provision for old age has increased. 57.3%, compared to 52.3% last year, now see it as a priority. Among east-German women however, the trend is going in the opposite direction. Saving for retirement has a high significance for 55.7%, compared to 70.6% last year.
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For further information:
Martina Fassbender
Telephone: 0611 773 25 71
E-mail: martina.fassbender@deltalloyd.de
Notes to editors:
Information on the survey
The survey was conducted by market-research institute TNS Infratest on behalf of financial services-provider Delta Lloyd in September 2009 and a total of 1,000 women between the ages of 18 and 50 were asked to assess their additional pension provision requirements and what provisions they had already made. Those interviewed represented a cross-section of the female population in Germany. The survey was carried out using the CATI (Computer-Aided Telephone Interviewing) system, based on a structured questionnaire.
About Delta Lloyd
Delta Lloyd Germany is a 100% subsidiary of Delta Lloyd Group, Amsterdam, and therefore part of the British Aviva Group. The company offers a one-stop shop for a wide range of financial, investment and provident products and also provides expert advice on all financial matters. Along with the Delta Lloyd Leben and Hamburger Leben life insurance companies, the Delta Lloyd Group in Germany is made up of a pension fund and a consultancy company for company pension schemes, as well as its own private bank and a property financing brokerage.