Germany Snapshot

Change. That is all we know for sure about the future of Germany’s pension system following 2017’s Betriebsrentenstärkungsgesetz (BRSG) – the system will change.

In the midst of this, how can we build trust in the system to create happier retirees? To find out, we sought the views of workers and retirees about their journey to and through retirement.

This report delves into findings from our Global Retirement Reality Report 2018, focusing on how the expectations of German workers saving for retirement compare to the realities of those already in retirement.

Here’s a preview of a few of the findings:

Optimism about financial situation in retirement increases with age

A common finding amongst the eight countries surveyed is that people become more optimistic about their retirement finances as they get older. This is certainly the case in Germany, where only 12% of the working population are optimistic which increases to over three-tenths for those later in retirement.

Saving for a rainy day is high on the priority list

After paying for regular essentials and going on holidays, saving for a rainy day came next on the list of where workers expect to spend their retirement savings. Indeed, this priority was higher for German workers than for pre-retirees from every other country in the survey.

The spending expectations of workers roughly match the experience of retirees, with the priority list being very similar between them.

What does the changing pension system mean for sponsors, schemes and the wider industry when helping members to achieve better retirement outcomes?


The views expressed in this material are the views of SSGA Defined Contribution as at 10 September 2018, and are subject to change based on market and other conditions.

This document contains certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance, and actual results or developments may differ materially from those projected.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. Investing involves risk, including the risk of loss of principal. The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.

Diversification does not ensure a profit or guarantee against loss. 

© 2018 State Street Corporation. All Rights Reserved.

2241918.2.1.GBL.RTL Exp. Date 31 October 2019