Numerous independent workers are seeking insurance coverage.
A new survey reveals insights into the financial struggles and preferences of self-employed individuals in Germany amidst the ongoing Corona pandemic.
Economic Impact on the Self-Employed
The survey, conducted among self-employed individuals, reveals that 61% have been economically affected by the pandemic. A staggering 20% are at risk of insolvency, and almost half (49%) are currently earning less than before the pandemic. Moreover, 3% of respondents reported having no current income.
Pension Preferences and Concerns
When it comes to pension provisions, the survey reveals a clear preference for security among the self-employed. Around two-thirds (64%) of respondents prioritize an optimal pension provision that offers security. On the other hand, nearly one-third (31%) are keen on higher returns by actively utilizing opportunities in the capital market.
However, the survey also shows that 46% of respondents are currently worried that their money will not be enough in old age. This concern is reflected in the fact that 43% of respondents expect to have insufficient capital in old age.
Flexibility and Understanding
The self-employed surveyed value flexibility in both the savings and payout phases of a pension provision. A significant number of respondents (46%, 38%, and 44%) want flexibility in contribution payment, savings phase, and payout phase, respectively.
Ease of understanding is also a priority for the self-employed, with 42% preferring products that are easy to understand and offer security in investment.
Mandatory Pension Provision: A Divided Opinion
While a majority of respondents (46%) support a mandatory pension provision for the self-employed, there is no clear evidence from recent information that self-employed individuals in Germany currently show strong or widespread support for mandatory pension provision as a direct consequence of the economic impacts of the Corona pandemic.
The current federal government plans to implement a mandatory pension provision for the self-employed, but there is no indication of increased political or public support among self-employed for this move due to coronavirus impacts.
Integrated Protection Against Seizure
More than half (58%) of the self-employed surveyed would like integrated protection against seizure of saved capital in case of unemployment. This highlights the need for pension provisions that offer not just financial security, but also protection against unforeseen circumstances.
In summary, while self-employed individuals in Germany can voluntarily secure pension provisions and may consider it increasingly important post-pandemic, there is currently no clear indication of strong or widespread support for mandatory pension provision linked to the economic effects of COVID-19. The system remains largely voluntary for self-employed, balancing individual choice and risk management.
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- In the face of financial challenges, many self-employed individuals in Germany are focusing on personal-finance matters, with 64% prioritizing pension provisions that offer security.
- Despite the economic impact of the pandemic, only 46% of self-employed respondents support a mandatory finance business approach for pension provision, suggesting they value personal-finance decisions and management.
