Evidence suggests that Germans have taken retirement saving more seriously in the last three years, with the amount of funds set aside for retirement growing as a percentage of total funds.
The BVI, Germany’s trade body for fund managers, said the percentage of funds managed by its members for pension provision had grown from 40% three years ago to almost half of the total funds managed now.
Funds managed by BVI members for retirement equalled €1,600 billion in the trade body’s latest survey, representing a €430 billion growth in monetary terms.
€1,110 billion was invested in institutional funds, or ‘spezialfonds’, while €240 billion was invested in open-ended retail funds. Mandates and closed-ended funds accounted for the rest.
Thomas Richter, chief executive of BVI, said a large proportion of “social capital” is invested in funds, even though people can access pension through other means, such as life insurance policies.
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