People in Germany are looking slightly more positively at their financial future. However, the extent of optimism is age-related: the younger the respondents, the higher the proportion who believe their financial situation will improve in the next two years. This is shown by the Wealth Barometer, which has been conducted annually since 2005 by the German Savings Banks Association (DSGV), surveying around 4,800 people aged 14 and older in Germany.

According to the survey, 38% of all respondents rate their current financial situation as good, a four percentage point increase from last year. Meanwhile, 25% consider it to be somewhat worse, which is a decrease of one percentage point.

When asked how their financial situation will change, 36% of all respondents expect an improvement within the next two years, up from 33% last year. Meanwhile, 22% anticipate setbacks, down from 25% in 2023.

Those aged 14 to 29 are particularly optimistic, with 70% expecting improvements, while those over 60 are the most pessimistic. 32% foresee financial deterioration and only 15% feel more optimistic.

„The under-30s are bursting with optimism“, said DSGV President Ulrich Reuter during the presentation of the results. Despite all the crises, be they climate-related, economic, or geopolitical, Reuter explains this optimism as stemming from their ability to influence their personal environment and the development of their own wealth. While the younger generation shares concerns about the state of the world, they remain optimistic about the things they can shape themselves. „This is a good foundation for optimism in society“, concluded Reuter.

The lack of confidence among many older respondents likely stems from their fear of not having done enough for their retirement savings. „The further away retirement is, the more optimistic the respondents tend to be“, the Wealth Barometer notes. Accordingly, 53% of those aged 14 to 29 expect to secure their financial future in old age. Across all age groups, 40% believe they can achieve this, which is slightly more than before. Last year, only 37% held this view.

Overall, 61% of respondents indicate they have taken measures for their retirement savings or plan to do so. But 22% feel financially unable to do this. Meanwhile, 13% have not yet considered retirement savings, and 5% rely entirely on the statutory pension. The concerns of many people regarding old-age security underscore the necessity of strengthening both private and state measures for retirement savings, Reuter said. Recent measures announced by the federal government point in the right direction.

There is broad agreement on the fundamental importance of saving. Three-quarters of all respondents state that regular saving is (very) important to them. 21% are somewhat reserved about it, while only 3% consider it less or not important.

Reuter welcomed the growing optimism among people regarding their financial situation and development but cautioned that this optimism cannot be taken for granted. „It also needs a foundation to grow," he said. "We must prepare that foundation.“

People need real prospects for economic improvement rather than merely hoping for the stabilisation of the current situation. „Therefore, we must get the economy moving again", he added. To avoid falling behind in international competition and to create growth, mobilising private capital is essential, along with investments in digital and physical infrastructure, and reducing bureaucracy.