The Retirement Provision Barometer by J.P. Morgan Asset Management reveals a significant confidence gap regarding retirement provision among younger Germans. Only 35 per cent of 18- to 34-year-olds express confidence in being able to secure their standard of living in retirement. This contrasts with 47 per cent in the 35- to 54-year-old age group and 46 per cent among those over 55. The average value across all respondents is 42 per cent. These results are based on a representative survey of 1,000 women and men in Germany, conducted in autumn 2025.
The study highlights that the scepticism of the young generation regarding their standard of living in retirement correlates with lower confidence in saving and investment decisions. Approximately half of the younger respondents are not or only slightly confident in this regard, while this proportion is around one-third in the middle age group and four out of ten among older respondents. A key factor for this uncertainty appears to be a lack of knowledge.
Knowledge Gap and Upcoming Reform
Only 56 per cent of 18- to 34-year-olds feel confident in making decisions about saving and investing, compared to 62 per cent in the middle age group and 61 per cent among older individuals. It is particularly noteworthy that 38 per cent of young respondents cite a lack of knowledge as the main reason for their uncertainty. This is almost twice as high as in the middle age group, where the figure is 19 per cent.
From 1 January 2027, the Altersvorsorgedepot (retirement provision account) will come into effect, a comprehensive reform of state-subsidised private provision in Germany. Holger Schröm, Head of Financial Services at J.P. Morgan Asset Management, sees this as a significant opportunity for all age groups, especially younger investors, as it allows for greater investment in higher-yielding asset classes. This is due to the abolition of the obligation for guarantees and lifelong pension payments. Schröm emphasises the importance of knowledge transfer and advice in the coming months to close the knowledge gap.
Mr Schröm highlights that the Altersvorsorgedepot offers young people a state-supported opportunity to gain initial experience with higher returns on the capital market and achieve better retirement provision than traditional savings methods. The variety of options within the Altersvorsorgedepot, including actively managed multi-asset ETFs, enables broad diversification and the utilisation of opportunities from different regions and asset classes. State subsidies for personal contributions, as well as basic and child allowances, are included in all variants. The next pan-European survey on retirement provision will be published in autumn 2026.
