Survey - Confidence in owning your own four walls as a retirement provision has fallen
According to a survey, confidence in home ownership as a retirement provision has fallen among professionals in Germany. In 2020, 51% still believed that owning their own home was the most trustworthy form of provision, but this figure has gradually fallen to 42%, according to a YouGov survey commissioned by HDI Versicherungen.
At 37 percent, approval is particularly low among people under 45. A total of almost 3900 working people in Germany were surveyed in May and June of the current year.
Increased costs, lower reputation
"In addition to rising interest, renovation and construction costs, which are having a negative impact on the current construction industry, the reputation of "concrete gold" as a means of providing for old age is apparently also suffering - especially among younger people," explained Jens Warkentin, CEO of HDI Germany.
In the ranking of the most trustworthy forms of provision, however, home ownership remains in first place despite the decline. Shares or funds were mentioned by 22 percent, putting them in second place. Rented property comes in second with 20 percent, followed by cash (19 percent). Private life and pension insurance (18%), occupational pension provision (18%) and the statutory pension (17%) were less popular in the latest survey than in 2020. At that time, these forms of provision still accounted for 24%, 20% and 22% respectively. Multiple answers were possible.
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The survey conducted by YouGov on behalf of HDI Versicherungen revealed that the confidence in owning a home as an old-age provision among professionals in Hanover, Germany, also mirrors this nationwide trend. Despite the decline in confidence, real estate still holds the top spot in the ranking of trustworthy forms of provision, beating out investments in shares or funds and rented properties. Due to rising costs and a waning reputation, especially among younger consumers, the appeal of owning a home for old-age provision has been diminished, according to HDI Germany's CEO, Jens Warkentin. Despite the fall in confidence, insurances remain an important component of old-age provision, with private life and pension insurance being among the less popular options, according to the most recent survey.
Source: www.stern.de
