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New report suggest nearly half of US young adults think retirement saving is useless

Just under half of young adults believe pension plans are pointless at present. Instead, their risk appetite for investments is increasing.

1 min read

Corona, war, inflation and more: almost half of the younger US generation don’t think it makes sense to save for retirement in the current situation. The mood in Germany is also at a low point when it comes to old-age provision, as shown in a new infographic from

  • Nearly half of young people in the US don’t think it is worth saving for retirement in the current situation
  • Similar picture in Germany: German old-age provision index at an all-time low
  • 60.8% of Germans expect the state pension to deteriorate
  • Appetite for investment risk increasing
  • 75% of US millennials want to use cryptocurrencies to fund their retirement

Across all age groups, one in four Americans is less confident about their retirement provisions than they were two years ago. 71% of Americans also say they are very concerned about the impact of inflation on their retirement preparations, as shown in a new study by Fidelity.

Meanwhile, the mood in Germany doesn’t seem to be any better. In spring 2022, the “German Retirement Provision Index” was at minus 3.2. A year ago, it was still at 1.6. The index is a measure of people’s mood regarding old-age provision in Germany, and is currently at a low point largely due to factors such as long-term inflation concerns. Strikingly, there is a growing pessimism across all age groups. Concerns are particularly high in the new federal states in the east.

60.8% of Germans expect the state pension to deteriorate, compared to 58.5% in the autumn of last year. Events such as the Ukraine war and resulting price increases, or the hard lockdown in China, which could massively intensify supply chain problems, are unlikely to lead to more optimism any time soon. 

But while fewer and fewer citizens seem to be indulging in traditional retirement planning and saving, the willingness to take risks with investments is rising sharply. According to a recent survey, as many as 75% of US millennials plan to use cryptocurrencies to finance their retirement. However, the still young market is so volatile that such plans should be viewed extremely critically. Digital currencies may be a high-yielding asset as well as an optimal portfolio addition, but whether the current top dogs of the market will still be of value in decades is anyone’s guess. The increasing appetite for risk can also be observed in Germany.

One thing is certain: more and more people are losing confidence in the security of their pensions – and think it makes little sense to make provisions. Economist Hans-Werner Sinn also shares this scepticism: “Look after yourselves. Don’t believe that the state can do it,” he appeals. However, diversification should be the order of the day.

Daily Planet

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