GERMANY - German investors are wary of putting money aside for their retirement in the current economic climate, a new survey suggests.

Monthly payments towards retirement saving have dropped from an average of €202 monthly to €188, according to the latest study by the German Postbank.  

"This is the lowest level since 2005," the bank noted in a press release.

The number of Germans who are considering increasing their private contributions to supplementary pensions has also dropped by 7%.

"Among all Germans, 52% say they are not planning to up their private retirement savings," Postbank confirmed.

That said, for the first time since the study began in 2005, there is a growth in the number of Germans who are is convinced they have saved enough for their retirement as 41% believe they have sufficient.

The news is not all good, however, as almost as many (40%) do not think they have enough and the rest is undecided.

The Postbank also found people did not take inflation or longevity risk into account for calculations of their retirement savings.

"Everybody should be concerned that those are two central aspects of retirement saving - the purchasing power of your pension and the duration of the payout phase - which are being neglected, said Michael Meyer, board member at Postbank.

While the sales figures for pension products have declined, the interest in purchasing a house or flat has increased but most people are still unaware of the new state subsidiary on flats and houses, the so-called housing Riester. (See earlier IPE article: Parliament approves use of pensions assets for housing)

Asked what was their ideal form of retirement saving was, 65% said it was owning a property whereas last year it was only 58%.

Interest in saving through building society accounts also grew by as much as 40%.

"This year's study shows how important it is for the state to create incentives for private retirement savings and to stress the importance of privately saving for pensions," Meyer concluded.

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