Between June and August 2005, in a representative survey conducted by GfK market research, Allianz AG asked 1,000 people each in France, Germany, Italy and Spain to provide information about their life aims, their happiness and their financial planning.

The developments in the labor market are leaving their mark: 88 percent of Germans say that "good qualifications" are their key life aim. They rank them well above "finding a partner" (80 percent) and "financial security in the future and in old age" (78 percent). Only then come aims such as, "self-determination and individuality" or "having children" (75 percent each).

Increased problem-awareness was also evident in connection with financial provision. 94 percent of Germans assume they themselves will have to take on responsibility for their personal provision. Only 10 percent consider themselves to be well informed about political reforms, and only 6 percent believe that the reforms of the state social-security system will leave them adequately provided for in the future.

Against this backdrop "financial security in the future and in old age", with a score of 78 percent, advanced to third place in the list of Germany’s most important life aims. However, by their own reports, so far only 34 percent of respondents have achieved this goal, which is the greatest discrepancy between the importance of a life aim and its achievement (see illustration).

Thus, says Michael Diekmann, CEO of Allianz AG, "Politicians, too, must act. They must continue to encourage people to take responsibility for setting up their own additional personal provision plans for the future, and give them the financial freedom to do this."

The Germans consider long-term financial planning to be a major prerequisite for the realization of many other life aims such as home ownership, a secure future and old age, seeing the world, qualifications and having children, and they believe that this discrepancy between vision and reality will prevent them from realizing these aims.

52 percent of Germans are content with life, while only 8 percent are very dissatisfied. This contentment is to a great extent contingent on the achievement of personal life aims.

Analysis of the replies revealed that on the one hand there are life goals whose achievement is, if anything, regarded as a foregone conclusion. Realization of these goals hardly increases one’s happiness, but makes one dissatisfied if they are not achieved. Goals of this type are good qualifications, finding a partner and having children.

The converse is true of the goals financial security, self-determination, enjoyment of life and career development. If these are achieved, they increase contentedness.

Germans are most content with their family and friends (72 percent). Next on the happiness scale, with a respectable 45 percent each, come health provision and time for leisure and hobbies.

On the other hand, only 28 percent are satisfied with their financial security in the future and in old age. This is the biggest differential among the three factors, importance of a life aim (78 percent), its realization (34 percent) and satisfaction with a given life aim (28 percent) in this survey.

In the search for reasons the survey provides Allianz with a few answers. With an average gross monthly income in Germany of 2,500 euros and average interest of 4 percent it would take 165 euros a month over a period of 25 years to maintain an average standard of living in old age – in addition to the state pension, but leaving aside long-term nursing costs.

However, low incomes restrict the necessary financial latitude for provision, especially with young people, people starting a family and individuals over 50. Only around 30 percent of respondents form monthly reserves for private provision of more than 250 euros, while just under 20 percent set aside nothing at all.

What can be regarded as particularly alarming is the fact that only 25 percent of those who have not yet achieved their private-provision goals believe they will still be able to achieve them. This, although Germans, more than French people, Italians and Spaniards, are either more ready to hold back on consumer spending in favor of private provision or are already doing so.

A good 50 percent of Germans have at least had the amount of pension they can expect to receive in retirement worked out. Yet according to the Allianz survey, only 31 percent know exactly how much money they will have at their disposal.

Only 39 percent have so far drawn up a long-term private provision strategy with the help of a financial services specialist. 37 percent of Germans invest at least 10 percent of their net income in provision. 27 percent are not yet adequately provided for, but are aware that they have to do something. 25 percent have no financial possibility of providing for their retirement, while 20 percent give the subject no thought because they are well provided for.

After savings accounts and savings plans (66 percent), life insurance is for 62 percent of Germans the product they would pick today to address their private provision needs. Hard on its heels are professional disability insurance (61 percent), private annuity insurance (59 percent), company pension plan (57 percent), supplementary long-term care insurance (55 percent) and private health insurance.

54 percent would go for a savings and loan product, a rather unexpected 43 percent would already entrust their future to an investment fund while 28 percent would put their money on equities. As far as the so-called "Riester pension" is concerned - this brought up the rear with a score of only 24 percent - it is quite clear that more work has to be done to build up confidence and explain how the product works.

Here, too, a German lead over the French, Italians and Spanish in private provision is evident – the Germans’ approval scores were above average for all the products surveyed.

In long-term financial planning the German respondents replied that they seek the advice of their life partners (51 percent) and families (47 percent) before consulting a personal banking or insurance specialist (37 percent). However, when these replies are compared with the data on actual satisfaction, the professional advisers are well ahead.

Satisfaction with advice from a banking or insurance specialist is dependent on whether the specialist listens attentively (banking: 76 percent, insurance: 75 percent), the relationship is long-term (68 and 60 percent respectively), whether the product being offered is transparent (65 and 64 percent respectively), the specialist is a personal acquaintance (63 and 60 percent) and whether the specialist is familiar with the customer's personal situation (55 and 50 percent). Only then does it matter if the specialist can provide access to other experts (52 and 50 percent) and whether the product package also includes other providers (52 and 51 percent).


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