interest rates

Save Germany's Savings Culture

ARCHIV - ILLUSTRATION - Eine 83-jährige Frau hält am 17.03. 2013 in Würzburg (Bayern) eine Ein-Euro-Münze. Das Statistische Bundesamt gibt am Dienstag (22.10.2013) eine Pressekonferenz zu Empfängern von Grundsicherung im Alter und bei Erwerbsminderung. Foto: Karl-Josef Hildenbrand/dpa (zu dpa-Meldung vom 22.10.2013) +++(c) dpa - Bildfunk+++
Saving money has become too difficult in Germany.
  • Why it matters

    Why it matters

    Despite Germany’s reputation as a country of savers, many Germans are still not saving enough for retirement. And because of the ECB’s low interest policy, savers will need to amass more to achieve the same retirement goals.

  • Facts


    • Some 40 percent of Germans say that they don’t save at all.
    • A recent survey found that people on average save about 25 percent less than they actually believe they will need for retirement.
    • The current low interest-rate environment makes it far more difficult for the average saver to benefit from the effects of compound interest.
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Saving money is considered a virtue in Germany. In other words, saving isn’t just a simple economic calculation, but rather is a value in its own right.

Experience shows that many people are inclined either not to save at all or save significantly less than they should to provide for their future. An established savings culture is needed to create a counterweight to that tendency.

A horrifying 40 percent of Germans say that they don’t save at all. But even those that do saver are clearly falling short of subjective goals in providing for the future.

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