The growing fear of poverty in old age: reasons and forecasts

Result

For nine out of ten German citizens, poverty in old age will be an unsolved problem in the future. It does not matter how old they are, their level of education or income, whether they live in the country or in the city, or whether they are male or female. Compared to 2016, this concern has increased by six percentage points, and by as much as 14 percentage points compared to 2008.

Reasons

Various factors contribute to the growing concern about poverty in old age. Firstly, many people find it difficult to build up sufficient reserves for old age during their working lives, whether due to low wages, unsteady employment histories, rising living costs or a high standard of living. Secondly, economic crises (including those caused by coronavirus, wars and inflation) and changes in the world of work (including short-time working, job losses and more precarious employment) have increasingly undermined confidence in future pension provision. Thirdly, the public debate about poverty in old age is also contributing to this, which is not unjustified in view of increasing life expectancy, an ageing population and the current risk of recession.

Forecast

Citizens' fears of future poverty in old age will not disappear in the medium term. This is also indicated by the high approval ratings of younger and higher-income population groups, who tend to be less at risk but nevertheless expect poverty to increase in old age. The growing concern among the population will increase the political pressure to implement comprehensive pension and social policy reforms in good time. However, political measures alone will not be enough to solve the problem of poverty in old age in the long term. Companies are also called upon to counteract this fear, for example with the help of company pensions, shareholdings, flexible working time models, support for older employees or higher wages. In addition, citizens themselves can also help to ensure that they can lead a dignified life in old age through private pension provision, consistent further training and lower expenditure during their working years.