Wealth barometer 2014: Germans rely on real estate
Around every second German citizen considers owning a house to be a secure investment. Instructed by the ‘Deutsche Sparkassen- und Giroverband’ (DSGV), the institute for economic and financial market research ‘icon’ reached this conclusion by questioning citizens over the age of 14 all across Germany concerning their financial situation. The results were published in the wealth barometer 2014 ‘Germans and their money’. Not only does this survey state that 52 percent of the participants think an owner-occupied real estate is the ideal form of wealth increase. 25 percent of the interviewed people consider buying property in order to re-rent it to be a great investment. According to the ‘Sparkassen- and Giroverband’ both results exceed the prior year figures.
Other saving possibilities became less attractive in comparison with last year. An endowment life insurance is favored by only 25 percent of the questionees. Company pensions (14 percent), Riester contracts (10 percent), and fixed income securities (6 percent) are also rather unpopular. Nevertheless: 27 percent deposit their money in a building savings account.
Low interest rates cause savers to re-plan
Many Germans are insecure about the current low interest rates. 45 percent of the questioned people worry mostly about the historic low interest rates when saving money. For that reason, mainly people with high monthly net salaries or with above average financial assets rearrange their investment products. Remarkably, people who change their financial assets find real estate (32 percent) and investment funds as well as property funds (14 percent) well suited for their capital formation.
It seems like Germans lost their pleasure in saving money even though their material resources are better than they have been for a long time. 85 percent of the surveyed people state that they are satisfied with their financial situation. This value steadily increases for ten years now. Nevertheless, the willingness as well as the initiative to save diminishes.
Young people lack interest in provisions
According to the wealth barometer 2014 young people show little interest in financial provisions. Half of the 14 to 29 year-old questioned people did not undertake any measures concerning provisions for old age. Yet, there are good reasons for starting to save money in time. According to the survey, 57 percent of the German citizens stated that it makes them happy to take financial precautions.