2024 Wealth Barometer: Financial confidence is growing – however, concerns about pensions remain

Despite the geopolitical and economic challenges, more people in Germany once again see their own financial situation as positive. This is demonstrated by the new “2024 Wealth Barometer” published by the German Savings Banks Association (DSGV). According to this survey, 38 percent of the respondents rated their current financial situation as “good” or “very good” – four percentage points more than in the previous year.

Optimism has returned, especially among younger people: among 14- to 29-year-olds, 48 percent of the respondents expressed positive views. “The young generation are showing that they are optimistic about their future despite the challenges of the past few years. This is an important sign which demonstrates that we are on the right track,” said Ulrich Reuter, President of the DSGV. 

However, pressing concerns remain, in particular about pensions. Reuter: “Many people are uncertain whether the money they have saved to date will be sufficient for their old age. It is essential, therefore, to continue stepping up both private and public action on provision for old age.” Reuter welcomed the fact that, in its latest reform package, the German government had outlined important steps to this effect. It was crucial that every euro paid individually into a private retirement plan was to be matched by public funding and that there were also plans to pay a bonus for low-income earners and young people entering employment as well as allowances for families with children.

Since 2005, the Wealth Barometer has examined not only the financial sentiment in Germany but also the effects on savings patterns. Right on time for the 100^th anniversary of World Savings Day, 37 percent of respondents stated that they had already adapted their savings behaviour because of higher interest rates or that they were planning to do so. In this context, Reuter emphasised the significance of a long-term savings strategy: “A look at the recent performance of the DAX shows how valuable it can be to participate in overall economic value growth.” Currently, only 39 percent of young people under 30 consider themselves to be well informed about securities; among older people, the figure is even lower. “So we must carry on educating people about securities. This is where it begins in order to secure the financial future on a broader basis,” said Reuter.

Although prices are still high, consumer spending has proven to be resilient in Germany. While 56 percent of respondents stated that they had reduced their spending, many have adopted a conscious and strategic approach by comparing relevant prices, looking for bargains and cutting back on less important outlay. There has been a positive development, especially among younger people: 27 percent of 14- to 29-year-olds have even increased their consumer spending. “I am pleased to see that the young generation have begun to spend more and that their trust in our economic stability is being restored,” said Reuter.