Special report: Pensions and long term savings 2012

The ING International Survey on Pensions and Long Term Savings shows the following main conclusions:

1. Europe’s long term savings is in a relatively healthy state, with 61% of respondents saying they have investments or money saved to meet long term goals other than retirement. There is a warning on the horizon, however, with almost the same number expecting as not expecting to have spare money in the next three months to add to these long term savings. - In every country other than Turkey, more respondents said their financial position had deteriorated over the past three months than said their position had improved, giving a negative net percent score (calculated by subtracting the “yes” answers from the “no” answers). - There was widespread caution about investing with a negative net percent score for the average European when asked if it was a good time to buy “risky assets” and “less risky assets”.

2. The picture for pensions is less encouraging. Less than half (40%) of respondents in Europe have a non-compulsory pension and women and young people appear to be particularly vulnerable. - In every country other than Austria and the Netherlands, there is significant worry about not having enough money to retire, reflected by the negative net percent score for this question. - Fear about having enough money to retire is the most pronounced in Euro crisis hotspots Italy and Spain. - The penetration of non-compulsory government pensions is lower among women in Europe than men and more women worry about having enough money to retire. - The vulnerability of young people is indicated by the expectations of later retirement, the expectation that their standard of living in retirement is not expected to be the same as that enjoyed by current retirees, and their relatively low uptake of non-compulsory pension funds.

3. The financial comfort of those already retired varies greatly between the countries surveyed. There are some intriguing results here, with Turkey very optimistic despite current retirees being the least comfortable. In Spain, retirees are the most comfortable yet Spanish yet to retire are among the most fearful about the future, perhaps illustrating an intergenerational challenge (also indicated by results for several other countries).