Gen Z Saves for Retirement, Mistrusts State Pension
Nearly one-third (31%) of young adults in Germany (ages 18-30) do not expect a significant state pension and nearly half are concerned about financial security in retirement, according to a new survey.
Frankfurt am Main, Germany – A significant portion of young Germans are preparing for retirement independently, with nearly a third (31%) of 18- to 30-year-olds expecting no substantial state pension. This skepticism is fueled by widespread concern for financial security in old age, as 83 percent fear poverty in retirement. Consequently, 55 percent are actively saving for their future.
ING Deutschland also analyzed data from approximately 1.16 million young customers. The findings reveal that one-third possess a securities account, and nearly half (45%) of these individuals regularly contribute to investment savings plans, averaging around 350 euros per month. The vast majority of these investments (88%) are directed into exchange-traded index funds (ETFs).
The survey also highlighted a financial disparity, with young men reporting approximately 500 euros more in net monthly income than young women. This income gap influences saving habits, with men saving 28 percent of their income compared to 24 percent for women. Long-term goals like emergency funds, retirement, and property purchase are prioritized over consumer goods.
Cash usage is declining among this demographic, with debt typically reserved for major life events. "Gen Z is actively engaging with their financial future and building wealth," said Bincy Kochalumoottil, Head of Daily Banking at ING Deutschland. "This generation expects simple, secure, and accessible ways to save, invest, and pay," added Tobias Czekalla, Visa Country Manager for Germany.