Every second German fears poverty in old age

Every second German aged between 20 and 65 years fears poverty in old age, according to a survey published by Germany's Deutsche Bank on Wednesday.

According to the survey, 75 percent of Germans believed that poverty among the elderly was a "widespread" phenomenon in Germany. The majority of respondents was also convinced that the statutory pension payments would not be sufficient.

"Pensions will continue to fall in relation to incomes due to population trends," said Stefan Schneider, chief economist of Deutsche Bank. "Even if the government continues its subsidies, the pension insurance system as it is now will make billions in losses."

According to the survey, more than 50 percent of Germans even expect the statutory pension system to collapse "sooner or later".

Reforming the German pension system would become "more and more difficult because the number of pensioners is rising sharply", stressed Schneider.

Only 17 percent of the 3,200 people surveyed in Germany said that their retirement was "secured" by Germany's statutory pension. On the other hand, 70 percent believed that the statutory pension system would only provide a "basic supply".

As a consequence, a large majority of Germans believed that in addition to the statutory pension in Germany, financial precautions with private saving institutes were "necessary to maintain one's own standard of living", according to the survey.

According to the survey, nearly half of Germans said that they were already saving money for an additional private pension, but almost as many said they would like to make additional savings for old age but lacked the necessary funds.

On average, Germans were saving 50 euros (55 U.S. dollars) per month for a private pension. However, a monthly savings rate of 200 euros would be needed, according to the survey.