According to a recent study by the German Institute for Economic Research (DIW), almost 7% of self-employed individuals in Germany do not have retirement savings, which translates to approximately 260,000 people out of around 3.7 million self-employed individuals. Moreover, nearly one in five self-employed people feels inadequately prepared for retirement, a finding that highlights a troubling trend of insufficient financial security in later life for this group.

The study, commissioned by the Federal Ministry of Labour and conducted with a representative sample of over 2,000 self-employed individuals, raises alarms about the growing risk of old-age poverty within this demographic. It suggests that the lack of retirement provisions among freelancers and self-employed persons could lead to significant economic insecurity as they age. Researchers underscore the need for reforms to help these individuals secure their financial future.

In light of these findings, experts are calling for mandatory retirement savings plans for self-employed individuals who currently do not have any form of financial safety net for their retirement years. The emphasis on implementing compulsory insurance aims to create a safety net and mitigate the risk of old-age poverty, ensuring that self-employed workers can sustain their quality of life in retirement.