Numerous freelance workers express a desire for insurance coverage.
In the current economic climate, concerns about retirement savings among self-employed individuals and freelancers in Germany are on the rise. A recent survey sheds light on the preferences and worries of freelancers when it comes to pension provision.
The survey reveals that a third (31%) of the independent respondents prioritize higher returns for optimal pension provision by actively utilizing opportunities in the capital market. On the other hand, 64% of the respondents express a desire for a pension provision that offers security, and 52% want flexibility in paying contributions.
Flexibility is also a key concern for the payout and savings phases, with 44% and 38% of respondents, respectively, expressing this preference. Interestingly, 58% of the respondents also want integrated protection against seizure of saved capital in case of unemployment for a mandatory pension provision.
The survey also reveals a worrying trend: almost half (49%) of the respondents are currently earning less than before the Corona pandemic, and nearly half (49%) are worried that their money will not be enough in old age. Furthermore, around one in ten (9%) freelancers have had to dip into savings intended for retirement due to the pandemic, and around one in five (20%) feel threatened by insolvency due to the impacts of the pandemic.
Despite these concerns, there is no clear indication from the available information that a mandatory pension provision specifically for freelancers in Germany has been implemented or that there is significant new support for such a mandate in response to the economic impacts of the Corona pandemic.
While the German government is focusing on reforms to the broader pension system, such as extending guarantees on pension levels and increasing contributions from employees and employers, these reforms do not mention freelancers specifically.
In conclusion, while freelancers in Germany have the option to make voluntary contributions to pension schemes, there is currently no mandatory contribution system in place. The survey results indicate a desire for a pension provision that offers security and flexibility, integrated protection against seizure of saved capital, and higher returns through active investment. However, further specialized research or German government reports would be needed to gain a more comprehensive understanding of the current policy landscape and potential policy proposals for freelancers' pension provision.
[1] German Pension Insurance website [2] German Federal Ministry of Finance website [3] German Federal Government website [4] [Survey data source] [5] German Federal Ministry of Labour and Social Affairs website
Freelancers express a desire for a pension provision that offers security, flexibility, and integrated protection against seizure of saved capital, with 52%, 64%, and 58% respectively preferring these features. Furthermore, these freelancers are also interested in higher returns through active investment, as revealed by 31% of the respondents prioritizing capital market opportunities. However, there is currently no mandatory pension provision specifically for freelancers in Germany, and further research or government reports would be needed to understand the current policy landscape and potential proposals for freelancers' pension provision. [1], [3], [4], [5]
