Germans save a lot, but why?

Germans are known for saving money, and nothing has changed. They are especially concerned about old age.

Germans have no problem taking out loans, but prefer to have savings in case of an unforeseen situation, so that the loan is more favorable. But Germans are more concerned about old age: there are fewer and fewer young people, more and more old people, and few believe that their pensions will be enough for at least a good life in their old age.

Saving for retirement is the most important savings goal in Germany. Almost 61 percent of respondents cited it as their main motive, the highest since spring 2017. This is according to a survey conducted by the public opinion research institute Kantar for the Association of Private Savings Banks. 2,000 people were surveyed.

But saving for larger purchases, such as furniture or a car, is also important – over 46 percent of respondents said they have set aside money for this purpose.

39% save for "their own four walls"

Savings for a home and a place to live have changed recently. First, in the era of rising prices, loans were unfavorable – because such savings are usually just a deposit for a loan, and in addition, real estate prices have increased significantly, so much so that some have concluded that they will never be able to afford the apartment or house they bought.

Now again, about 39 percent of respondents are saving to buy an apartment or house, which is slightly less than a year ago (42 percent), but significantly more than in the fall of 2024 (33 percent).

35 percent of respondents cited capital investments as a motive for saving. Almost six percent save for “emergencies” and four percent for children’s education.

"The end of the period of low interest rates has clearly shown people that saving is worthwhile again – and that it is necessary. Giving up spending today creates greater freedom tomorrow," says Christian König, executive director of the Association of Private Housing Savings Banks.

However, interest on deposits rose at a time when inflation was high. Now that it is falling, it remains to be seen what will happen to interest rates. But saving for old age is an exception to the current interest rates for another reason: “People are increasingly realizing that the state pension will not be enough.”

Women often save too little for old age

Those saving for retirement should also take their life expectancy into account, and here the research noticed a strange detail. According to research by the Federal Institute for Demographic Research (BiB), middle-aged women often underestimate how long they will live – while men of the same age are overly optimistic.

Study author Anna Reuter explains: “The research shows that people who underestimate how much life they have left tend to invest less in their retirement security.” This can lead to a lower pension and a higher risk of poverty in old age.

Thus, men aged 40 to 49 assume on average that they will live 1.2 years longer than the statistics show – currently in Germany it should be 79.2 years, but they “round it up” to more.

Women of the same age, on the other hand, underestimate their life expectancy – by an average of 3.3 to 5 years, because statistics show that they will live longer than men and live up to 83.9 years.

One of the study's authors, Andreas Mergenthaler, points out that for women in particular, financial security in old age is a growing problem. Not only do they have a shorter life expectancy, but on average they earn significantly less than men, which could be an even bigger financial problem in the future.

/DW