The problem has been known for years and perhaps this is the particularly frightening aspect of the problem: there is a challenge that reveals clear weaknesses when it is solved and then nothing changes over the years, or at least not much.
At this point we are talking about private old-age provision. It is now generally known and acknowledged that without any savings efforts of its own, it will stand on a very, very thin foundation. The consequence is that those who do not make provisions themselves can expect significant losses and a reduced standard of living in old age.
So far, so well known. Against this background, it would be expected that the Germans would now start to solve this problem. Some go this way and they go it quite successfully. The only problem here is that they only represent a minority in relation to the total population.
Looking into the catastrophe?
The majority of Germans go other ways. They either don’t save at all or don’t save enough. And even those who build up regular and sufficient reserves invest them so badly that only comparatively small assets are available in the end.
If you have already dealt with this topic a little more intensively, you will hardly be surprised at this point. Perhaps you are just as shocked as I am that despite years of admonitions and warnings not much has changed at this point.
It’s a bit like sitting in a car that’s heading straight for a wall. Braking and turning the steering wheel would now be the appropriate and also the smartest reaction. Unfortunately, many Germans cannot bring themselves to do this. They let things take their course and don’t even take their foot off the gas.
This is sad and also incredibly damaging in the long term, but true.