Young Germans put pensions back on the agenda
GERMANY - Young Germans are thinking about supplementary retirement provision again for the first time since 2008, according to a study conducted by Union Investment.
The last quarter of 2009 may have prompted a rethink among Germans regarding supplementary pension provision, as a quarterly poll commissioned by Union Investmet showed 72% of respondents feel they will have to deal with it.
This is a significant increase on the previous quarter when only 68% thought likewise, although the number of young individuals looking at the issue is still less than the 77% who felt it was important during earelier months of the recent financial crisis.
The latest increase was most pronounced among the 20 to 29 year-olds, said Union Investment although it noted that only 63% in this age group have actually done more than think about retirement provision - well below the 71% average across all age groups.
The German asset management company also claimed that people were again more likely to trust fund-based retirement provision as opposed to insurance vehicles since the markets began to recover in the middle of last year.
Elsewhere, pension consultancy Longial noted companies will have to look into their pension reserves as reform of the financial standards, known as BilMoG, will come into effect for the first time on 2010 balance sheets. (See earlier IPE-story: Consultancy sees Pensionsfonds growth)
"Because of these changes, it is to be expected that small- and medium-sized companies will deal more extensively than before with the question of the long-term and reliable financing of their pension liabilities," noted the consultancy.
Longial agrees with many other experts who believe this will also lead to an increase in the outsourcing of pension reserves and liabilities.
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