ERGO Blickpunkt: Nearly half of all self-employed in Germany now earn less than they did before the pandemic


ERGO study shows: considerable fear of old-age poverty; increasing support for mandatory insurance for freelancers

Media Information, 30.06.2021

Financially speaking, self-employed have been especially hard hit by the coronavirus pandemic. This also affects their old-age provision, which those surveyed now have less money for than before the pandemic. As a result, they are very concerned about old-age poverty. A majority of those surveyed would support mandatory insurance for self-employed. These are the main findings of a survey of 511 self-employed working in Germany, which was conducted by YouGov on behalf of ERGO in June 2021. The survey marks the start of the ERGO Blickpunkt study series, which ERGO uses to shed light on current social issues.

ERGO Kurzstudie Altersvorsorge

Not only in their private lives, but in many cases also financially, self-employed are especially hard hit by the coronavirus pandemic. Of those surveyed, 61% reported being financially impacted by the effects of the coronavirus pandemic, while one in five (20%) is in danger of going bankrupt. In addition, 49% of respondents now earn less than they did before the pandemic, and 3% currently have no earnings whatsoever.

This also affects their old-age provision: nearly half (46%) of the self-employed surveyed stated that, as a result of the pandemic, they now had less or no money to put away for their old age. In fact, nearly one in ten (9%) had to draw on financial reserves originally intended for their old age.

Major concerns about old-age poverty
As a result, German self-employed are very concerned about old-age poverty. Nearly half (49%) of those surveyed said they feared not having enough money in their old age. What's more, 43% now assume that they won’t have sufficient savings in their old age.

Nearly half (46%) of respondents would support mandatory pensions for self-employed, a step currently being considered by Germany’s federal government, so as to enjoy more financial security in their old age.

Federal government called upon to take action
Even before the pandemic, private pensions were especially important for self-employed, who had little or no claim to social benefits. Nevertheless, until recently more than a third (37%) of those surveyed eschewed private pensions.

“The survey shows once again just how important private old-age provisions are in shielding self-employed from the risk of old-age poverty”, explains Michael Fauser, Chairman of the Board of Management of ERGO Vorsorge Lebensversicherung AG. “Accordingly, mandatory insurance for self-employed is unavoidable. The results of the survey are a clear call to action for the incoming administration in Berlin to solve this problem in a timely manner.”

Optimal old-age provisions need to be flexible and easy to understand
If mandatory old-age provisions were introduced in Germany, more than half (58%) of the self-employed surveyed would want them to include integrated protection from the seizure of their savings in the event of unemployment. More specifically, 52% want flexibility in terms of premium payments, while 42% want the products to be easy to understand and offer a secure form of investment.

When asked what tailored old-age provisions should look like, roughly two-thirds (64%) of respondents answered that they should offer security. Some 44% wanted flexibility during the pay-out phase; 38% during the pay-in phase. For nearly a third (31%) of those surveyed, optimal old-age provisions should offer higher returns on investment by more actively tapping the opportunities offered by capital markets, for instance.

“In this regard, flexibility also includes the free choice of products,” Fauser adds. “A standard product offered by the state doesn’t fit the varying pension-related needs of those surveyed. Consequently, we need to make old-age provisions mandatory, combined with individual choice of products, in order to best meet everyone’s needs.”

About the survey
From 1 June to 7 June 2021, YouGov surveyed 511 self-employed working in Germany on behalf of ERGO with regard to the financial repercussions of the coronavirus pandemic and old-age provisions.

Dr. Dr. Michael Fauser

For further information, please contact:

Jan Fulle

ERGO Group AG
Media Relations

Tel +49 211 477-8518
jan.fulle@ergo.de
mediarelations@ergo.de

About the ERGO Group AG
ERGO is one of the major insurance groups in Germany and Europe. Worldwide, the Group is represented in around 30 countries and concentrates on Europe and Asia. Four separate units operate under the umbrella of the Group: ERGO Deutschland AG, ERGO International AG, ERGO Digital Ventures AG and ERGO Technology & Services Management AG. German, international, direct and digital business as well as the global management of IT and tech-nology services are combined there.
About 38,000 people work for the Group, either as salaried employees or as full-time self-employed sales representatives. In 2020, ERGO recorded a total premium income of over 18 billion euros and rendered benefits to customers (gross) of around 16 billion euros. ERGO is part of Munich Re, one of the world's leading reinsurers and risk carriers.
More at www.ergo.com

Disclaimer

This media information contains forward-looking statements that are based on current assumptions and forecasts of the management of ERGO Group. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forwardlooking statements or to conform them to future events or developments.

Related articles

Media Information 09.07.2019

ERGO´s new basic pension - government subsidies with either guaranteed minimum pension or additional return potential

As of July 2019, ERGO Vorsorge is offering new products in a new old-age provision scheme. In the case of ERGO´s Basic Pension, customers may choose from two alternatives, whereby the ERGO Basic Pension Index combines government subsidies with a 100-percent premium guarantee plus a guaranteed minimum pension.

Media Information 25.01.2021

ERGO Begins Awareness Campaign for Old-Age Pensions

As of immediately, ERGO is beginning a multichannel campaign for private pension plans. Until 7 March, advertising clips will be shown on TV and online, accompanied by an influencer campaign on Instagram. In this way, ERGO is strengthening its position as a competent provider of pension plan products for all generations. The content was developed in cooperation with Jung von Matt/SAGA. 

Media Information 03.02.2021

ERGO expands range of pension plans to include a sustainable pension product

ERGO has further modernised its pension plan offerings with the launch of a new sustainable pension product at the end of 2020, ERGO Eco-Rente Chance. ERGO’s response to key social trends also opens up new opportunities for retirement provision.