Few can afford to invest in real estate, and there is no guarantee that government pension funds will be able to cover younger generations when they retire. A study based on data from “Living in Germany” and published by ZEIT online shows how people in Germany are providing for old age instead.
According to the study’s findings, men are more likely to invest for retirement than women, and academics and higher earners are more likely to invest in financial assets and insurance than others.
In addition, they ways people prepare for retirement depend on their age: Almost half of people over the age of 51 have financial investments such as stocks, savings bonds, or investment certificates, whereas younger people tend to rely on pension insurance.
People in the former East Germany also tend more to rely on pension insurance than those in the West, with 36 percent in the East and 33 percent in the West holding pension or life insurance policies. This could be because people in the former East Germany have fewer alternatives, as they are less likely to own real estate than people in the former West.