Pensions: are we saving enough – or just saving wrong? 

In the latest episode of the This is Deutsche Bank podcast, Christian Nolting, Global Chief Investment Officer for the Private Bank, and Raffael Gasser, Head of Wealth Management in Germany, join host Michael Steen to explore the state of pensions in Germany, comparing it to pension systems in other countries. Their focus is on the growing importance of private and occupational pensions.

The demographic dilemma

In Germany, two workers now finance each pensioner, a ratio projected to fall to 1.3 in the coming years. This demographic shift is straining the traditional “pay-as-you-go” model, where today’s workers pay the pensions of people in retirement. That used to work well – back in a time when the population was shaped like a pyramid, with many young and fewer older people. Nowadays, though, we are living in an ageing society.

Dramatic loss in confidence

A new survey on retirement provisions conducted by Deutsche Bank and DWS found that 83 percent of Germans now doubt the long-term reliability of their pension system . That’s a dramatic loss in confidence compared to 2019, when this figure was 54 percent. More than half of respondents feel anxious about their financial future, and only a third believe they’ll be able to maintain their standard of living in retirement.

What can be done?

Christian Nolting and Raffael Gasser agree: reform is essential, with 75 percent of survey participants calling for changes to ensure intergenerational fairness. Our experts both believe that improved financial education is crucial, and more flexible, transparent investment products could strengthen private retirement provision.

What can Deutsche Bank do?

We help people invest in their future. A decisive factor here is tailored personal advice on pension planning; it’s a topic that people shy away from because of its complexity and long-term nature, as Nolting and Gasser say. They call for more financial literacy programmes in schools and point out that Deutsche Bank is already active in this area.