Saving for pensi: Austrians and millennials leading the world

What do the Austrians and the Indians have in common? They are confident that the pension will be enough. When it comes to saving, however, no one can hold a candle to Austrians worldwide. There is worldwide pessimism about whether it is enough for the pension, at least for some generations.

Have you ever wondered how much of your savings you can spend in the pension each year, to say we could live well until your mid-80s? Investors worldwide are quite confident with such rough calculations. On average, they assume that they can spend around ten percent of their savings each year after retirement without running out of money. A quarter even believe they can spend at least 15 percent a year.
The Indians are the most carefree worldwide. They assume that they can consume 15 percent of their retirement savings each year. This is the conclusion reached by Schroders Global Investor Study 2019, for which more than 25,000 investors from all over the world were surveyed.

15 percent of income is saved worldwide.
The figures are no accident. Savings are being made worldwide. The share of income that is put aside is considerable. Investors of working age worldwide save an average of around 15 percent of their monthly income for their retirement savings. Income earners save the most in Asia on average, at almost 16 percent. On the American double continent, citizens put aside 14.5 percent of their annual income, in Europe it is 14.9 percent.

Austrians: The world's
saving savers According to the Schroders study, Austrians save the most money. On average, they set aside 21.6 percent of their salary for old-age provision. Even the Swiss, with a savings rate of 21.3 percent, can't quite keep up. The savings rate of German investors is also above the European average and is 18.2 percent.

Millennials: the most sensible worldwide
If you compare the generations, the millennials are the number one savers. They are between 18 and 37 years old and are apparently most afraid that due to the demographic development they do not have enough state pensions and the increasing life expectancy they do not have enough money at their disposal. They set aside 15.9 percent of their income for life after work.

Millennials are even more willing to save more When it
comes to saving and the will to save even more, no other generation can match the millennials. 97 percent of the age group surveyed can imagine saving even more than before for retirement. All other generations can also imagine even more savings for the pension, this is 94 percent for generation X, but then the proportion increases.

But all the saving obviously doesn't calm down. In the same study, respondents were concerned that their savings might not be enough in old age.

22 percent of working Austrians are worried - pensioners completely unconcerned
From a geographical perspective, worries about not saving enough are most pronounced among retired investors in Asia and Europe. Of these, 26 percent and 25 percent, respectively, are worried when they look at their retirement savings. Those who are worried include the world savings champions, the Austrians. 22 percent of those surveyed expect to run out of their own reserves in retirement. With this assessment, they are a European average of 25 percent. Among Americans, 22 percent of those questioned also doubt whether they can accumulate enough savings by then. Only the Indians are practically free of fear when it comes to their financial future in old age: only six percent of them are concerned about this

Anxiety-free Austrian retirees
In contrast to other countries, however, an overwhelming proportion (96 percent) of those who are already retired have no doubt that they have saved sufficient funds for retirement. In Germany it is only 76 percent. Austrians who are not yet retired are more pessimistic. 22 percent of them said they were concerned about the amount of their savings.

and save. All other generations can imagine that too. In Generation X this is 94 percent, then the percentage increases.

Worries are greatest among baby boomers
This concern is greatest among those who are gradually retiring: baby boomers. 34 percent of them doubt that they can make ends meet with their savings in the pension. It is 21 percent among millennials. In a global comparison, Asians and Europeans are most concerned that the savings will not be enough in the end. The concern among Asians is all the more understandable since there are no state pension systems in different countries or only those with very low payouts.