How the younger generation makes supplies for their future

May 5, 2022 – In a series of studies, Metallrente examines the financial condition of adults up to the age of 27 and their willingness to build up reserves to provide for old age. 37 percent save money regularly for retirement. The most popular investment options are 2022 stocks and funds.


Every three years, Metallrente GmbH examines the saving behavior of young people and adults. At the end of the year, the company’s pension system announced the fifth edition of its long-term study “Youth, Pensions and Finance” for the month of May and published the first results (VersicherungsJournal December 20, 2021).

The study focuses on the perception of young people between the ages of 17 and 27 during and after the Corona crisis regarding their financial prospects and their willingness to provision and save.

Information about the study

Every three years, about 2,500 people are asked about their savings thoughts and behavior, knowledge of financial issues, and plans for their retirement savings. The company works with Kantar Public to collect and evaluate data.

The current fifth wave of the survey was now, for the first time, exclusively web-based as part of an online access panel with 100 questions in order to better meet the requirements of the target group, the study states. The metal rent gives the survey period in October 2021.

The company presented the latest version of the assessment in 2019. In the pre-coronavirus year, 32 percent of those surveyed said they made a regular old-age allowance. Company pension schemes (BAV) became more and more attractive at that time. However, the pension system was concerned with the saving behavior of young women (05/07/2019).

Saving is still the zeitgeist

MetalRenty Youth 2022 Trust Study (Photo: MetalRenty)
Metallrente Youth Study 2022 (Photo: Metallrente)

Although the epidemic has been going on for more than two years, the majority of young people continue to save money for the elderly.

However, the Corona crisis has hampered optimism about their future. “How the radical experience of the war in Ukraine will affect the situation of the younger generation can no longer be recorded in this study,” the study authors wrote.

Regardless of the current crises, the younger generation is still afraid of poverty in old age, and low interest rates are leaving their mark. “More than ever they are investing their money in stocks and funds,” says the introduction to the current report.

The majority (86 percent) put money aside regularly. This means that saving behavior hasn’t changed much since the study series began: in 2010 it was 84 percent and three years ago it was 85 percent.

According to the survey, young people save more frequently for larger purchases (78 percent), followed by creating reserves for unexpected events (76 percent) and vacation trips (70 percent). 60 percent set aside money for retirement.

Retirement benefits: 37% put money aside regularly

51 percent of 17- to 27-year-olds are considering retirement and building up their reserves. In 2010 it was still 55 per cent. 37 percent of savings regularly for retirement. For 60 percent of those surveyed, it is important that their old-age savings investments also take into account social or environmental criteria. For 71 percent, a high return is most important.

As of 2019, 58 percent of those surveyed currently trust a statutory pension. Corporate pension systems (BAV) came in second with 49 percent. This is a nine percent increase since 2019. Life insurance companies (46 percent) and banks (44 percent) come last.

37 percent of survey respondents who set aside money for seniors pay for a company pension. That percentage was higher in 2016 at 40 percent, but it was also lower in 2010 at 31 percent, the study authors stress.

When it comes to saving for retirement, young people are clearly ahead: 45 percent regularly set aside money for old age. For women it is only 29 percent.

Metallrente Youth Study 2022 Saving Old Age (Photo: Metallrente)
Metallrente Youth Study 2022 (Photo: Metallrente)

The popularity of stocks and mutual funds soared

The desire to build reserves is also based on the fear of poverty in old age. 90% of those surveyed are of the opinion that they should make special allowances so that they are not poor in old age. Equity and money are common means to an end. 50 percent of all young people who save for retirement invest their money in securities. In 2019 it was just 28 percent.

“In previous studies, this form of saving played only a minor role. The willingness of the younger generation to invest in profit-oriented investments is increasing by leaps and bounds. Thus, they react very rationally to the ongoing low-interest environment,” was quoted by Herbert Karsch, former Managing Director of Metallrente and retired since the end of the year (September 8, 2021), saying about the results.

But the gender difference is evident here, too: 62 percent of young men currently invest in stocks and funds, but only 34 percent of young women.

Knowledge about saving aging is expandable

Currently, 62 percent of those surveyed say they are “very good” or “good” at financial matters. When it comes to providing aging services, on the other hand, there’s a problem: In 2022, only 31 percent believe they have a “very good” or “good” level of knowledge.

And this has an effect: according to their own statements, only 39 percent of young people can interpret the term “professional pension system”. That’s the same number in the 2010 survey. 47 percent have already heard of a gross salary transfer, and only 23 percent can do something with Riester Support.

Metallrente makes an abridged version of the 2022 Youth Study available for free download on its website.

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