Mixed emotions: The financial mood is ambivalent
How do people in Germany feel about their financial situation? The result: positive and negative feelings are represented in similar measure. Satisfaction and uncertainty are evenly balanced at 30.9% and 30.2%, respectively. However, anxiety is an issue for one in four people when it comes to their personal finances. Differences become apparent when generations are compared: the younger the generation, the more hopeful people in Germany are. Generation Y is comparatively often found to be frustrated, whereas baby boomers are primarily relaxed and satisfied.
Question: When you think about your own financial situation, what emotions does it evoke in you?
Our study shows that younger people tend to be insecure but active, while older people tend to be more secure and calm. Financial well-being and financial sentiment in Germany are clearly divided along generational lines. However, these different starting points also require completely different advisory approaches and financial strategies. To make sound financial decisions, advice must be tailored to the target group, with each generation informed about its specific financial risks.
Prof. Dr Johannes Treu
Professor of General Business Administration and Economics at IU International University of Applied Sciences
More than half of people are concerned about the current economic climate
When it comes to concerns about the current economic climate, all generations are in agreement, from inflation to low economic growth. There is consequently a high level of agreement across all age groups with the statement: “The current economic climate in Germany worries me.” At 56.3%, the majority of respondents completely agree or tend to agree that the current economic climate is cause for concern. If we add the respondents who answered “partly”, 87.6% feel insecure. A trend can be observed when comparing generations: the older the participant, the more likely they are to view the economic climate with concern.
Question: To what extent do you agree with the following statement? “The current economic climate in Germany (e.g. inflation, weak economic growth) worries me.”
Excerpt from the statements surveyed
Feelings of financial security can be ambivalent
Despite the current economic climate, more than a third of people in Germany feel very or somewhat secure in their financial situation (35.2%). Almost as many (34.6%) feel partly secure. For almost another third, the economic climate is causing uncertainty about their own financial situation: 30.2% feel very insecure or somewhat insecure.
Question: To what extent do you feel secure in your financial situation given the current economic climate?
One in two people worry about poverty in old age
There is a concern about poverty in old age. 49.7% completely agree or tend to agree with the statement: “I am worried that I will not have sufficient financial security in my old age.” When comparing age groups, baby boomers tend to have the fewest concerns compared to younger people. Read more about retirement provision as a financial goal in the chapter “Goals and obstacles”.
Question: To what extent do you agree with the following statement? “I am worried that I will not have sufficient financial security in my old age.”
Excerpt from the statements surveyed
Economic uncertainty – from inflation and energy prices to weak growth – affects all generations. The results demonstrate that the pension issue in particular is a cause of concern for many people. Even today, many older people are affected by poverty in old age, and it is unclear whether the current system will be able to cope with demographic change. Therefore, it is necessary that the pension system be reformed in a sustainable manner and that private pension instruments be strengthened in order to improve the financial security of current and future generations.
Prof. Dr Johannes Treu
Professor of General Business Administration and Economics at IU International University of Applied Sciences
