Women increasingly relying on stock investments for retirement fund accumulation
Confidence in stocks and funds skyrockets among German workers in 2024
A survey conducted by HDI Insurance, part of Europe's leading insurance group Talanx, reveals a staggering increase in confidence among German workers towards stocks and funds as retirement planning options in 2024.
Homes reign supreme as the preferred retirement saving method, but securities are closing the gap, overtaking the statutory pension in popularity. Stocks and funds now rank second among the most trusted retirement savings options at 25%, while the statutory pension, once trusted by 22% of respondents, has seen a significant drop to 16% in 2024, particularly among those aged 45 and above.
Holm Diez, board member at HDI Deutschland, remarks, "We're witnessing a significant shift in the mindset of German savers who traditionally favor safety in financial matters."
Women's faith in share investments soars
The survey showcases a noteworthy increase in trust among working women towards securities. Confidence has increased by one-third compared to the previous year, reaching 19%. For the first time, stocks and funds are becoming a viable retirement option for women, despite lingering skepticism. The decline in the statement "Stocks are too risky" (from 49% to 40% year-on-year) suggests a positive trend.
Diez emphasizes, "Women aren't looking for gender-specific products; they want tailored advice that can adapt to their life situations and help manage potential gaps in retirement planning due to parental leave or care work."
Fading trust in rental properties and homeownership
Trust in rental properties as a retirement option has subsided, falling from 22% in 2020 to 17% in 2024. Traditionally a key retirement planning pillar, homeownership is also losing its appeal. Despite this, only 42% of respondents still trust in the value of their own homes in 2024, compared to 51% in 2020.
Respondents acknowledge the capital market risks, but they are increasingly recognizing stocks and funds as potential inflation protection and return sources that may outweigh the risks.
Regional differences exist, with stocks enjoying the most trust in Rhineland-Palatinate and Saxony-Anhalt having the least trust.
While the survey provides valuable insights into the shifting attitudes of German workers towards retirement planning, it does not directly address the reasons behind the increase in confidence in stocks and funds, especially among women or the regional differences involved. However, economic recovery, improving economic indicators, and investment opportunities might play a significant role in shaping overall confidence, according to related economic trends in Germany.
- Stocks and funds have become a more trusted retirement savings option for women in 2024, with their faith in share investments soaring by one-third compared to the previous year.
- Despite the rise in trust towards securities, confidence in rental properties as a retirement option has subsided, falling from 22% in 2020 to 17% in 2024.
- Holm Diez, board member at HDI Deutschland, noted that as the confidence in stocks and funds increases, particularly among women, they are seeking tailored advice that adapts to their life situations and helps manage potential gaps in retirement planning due to parental leave or care work.
- The survey indicated that while the trust in homeownership is declining (from 51% in 2020 to 42% in 2024), regional differences exist with stocks experiencing the most trust in Rhineland-Palatinate, and Saxony-Anhalt exhibiting the least trust, reflecting varying investment climates across Germany.
