Homeowners make up a significant portion of savings investments, as indicated by the statistic that shows three out of every four savers are putting their money into their own residence.
In a recent comment, Axel Guthmann, the association director of the Landesbausparkassen, highlighted the importance of homeownership as a valuable asset for wealth accumulation and retirement provision. Guthmann emphasized the need to recognize self-used residential property as an equal and subsidizable form of retirement provision.
According to a survey, this belief is widely shared among both tenants and homeowners in Germany. The survey revealed that 69% of tenants and a staggering 90% of homeowners consider owning a home as an essential part of their retirement plans.
The upcoming legislative period in Germany plans to reform subsidized private retirement provision. However, the role of homeownership in this context has not been overlooked. In fact, the current coalition government, comprising the Social Democratic Party (SPD), the Greens, and the Free Democratic Party (FDP), has implemented measures over the past decade to make homeownership more accessible for a larger number of people.
Prior coalitions involving the CDU/CSU and SPD also took initiatives such as promoting housing construction and offering financial support programs to facilitate access to homeownership.
The German Institute for Economic Research has reported that tenants in retirement age spend an average of 34% of their household net income on housing costs, while homeowners spend only 15%. This significant difference in spending can make a substantial difference in terms of quality of life in old age, given the already lower incomes in old age.
Guthmann also highlighted the advantage of owning a home due to saved rent, particularly in old age. He pointed out that the difference in housing cost spending between tenants and homeowners can make a significant difference in terms of quality of life in old age.
Moreover, 79% of those surveyed believe that a home offers secure retirement provision. Guthmann suggested that regardless of the reform path, the Riester (home) pension should not be devalued as a form of retirement provision.
Interestingly, Germany has one of the lowest homeownership rates in Europe. It is, therefore, an important task for politics, according to Guthmann, to make it easier for more people to own their own home.
In a positive development, 75% of the people surveyed in Germany consider a property to be the best investment, an increase from 66% ten years ago. This suggests a growing recognition of the value of homeownership as a means of wealth accumulation and retirement provision.
In conclusion, homeownership plays a crucial role in the financial security of individuals in retirement, and it is a topic that German politics should continue to address. The benefits of homeownership, including reduced housing costs and secure retirement provision, make it an attractive option for many Germans, and efforts to increase homeownership rates will undoubtedly contribute to the financial stability of the nation's elderly population.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
