GERMANY - Only 10% of Germans have changed their private pension provision on the back of the financial crisis, a survey by JPMorgan has found.
Almost 53% of the 1,900 interviewees said they believed markets will turn around again in the long-term and would therefore not alter their retirement savings in Riester- or Rürup-Rente funded pension plans.
Over 32% were still undecided or failed to answer the question, but said they are still waiting to make a decision but JPMorgan pointed out the survey was undertaken in November - one of the most volatile months for German markets.
Of the rest, 8.7% moved their money into cash on deposit or savings books, 1.7% went into insurance products, 1.1% into guarantee funds and 0.9% into money market instruments, while nly 2.2% of those questioned completely moved their assets out of long-term savings plans or insurance contracts.
However, most Germans do not see the current market environment as an opportunity to invest in equities or diversify their portfolios further either: 1.2% said they might start investing in shares and 0.9% will attempt further diversification.
In total, the number of people willing to save privately for their retirement has even increased by 0.7 percentage points compared to last year and has now reached 42.6%.
Those who do not save privately either think the state rent and/or their workplace retirement plan will suffice to cover them or claim they cannot afford supplementary pension provision.
Approximately 28.1% of all interviewees said they had no money left to put aside for retirement.
"Given the looming hole in retirement provision it is alarming to think almost every third cannot afford to save privately for their pension," noted Charles Neus, chief executive of JPMorgan Asset Management in Frankfurt.
Trust in the state pension remained low at 6.1% among those interviewed and the rate is similar for those believing a mix of state pension and occupational retirement provision will suffice.