It is a well-known fact that labour insurance is one of the most important types of insurance that everyone should take out, even if occupational and disability insurance are unfortunately relatively expensive risks to insure against. A recent study has now revealed that every second person in Germany (54%) is worried about not having enough money to cover their own labour force in view of the ongoing inflation.
This fear is particularly prevalent among women: almost two thirds (63%) are concerned that they will not be able to afford additional provision, for example in the event of occupational disability - an increase of 21 percentage points compared to 2020. It is fitting that a lack of money is cited as the most common reason for not having work insurance. 38 per cent of women who do not make provisions state that this is due to a lack of money - 10 percentage points more than in 2020. However, the financial situation is also tighter for men than it was three years ago. Here, the proportion of those who say that they do not have enough money for work-related insurance has risen from 21 to 32 per cent. These are the findings of a representative study on the subject of labour protection conducted by the MetallRente pension fund, for which Kantar Public surveyed around 2,000 people between the ages of 14 and 45. The study was conducted for the first time in 2020.
Illusion of provision for occupational disability widespread
At the same time, more than one in two people aged between 14 and 45 (54%) wrongly assume that they are covered by a state pension in the event of occupational disability. Women have a more realistic picture here than men. While half (49%) of women wrongly expect state disability benefits, the figure for men is 58 per cent.
Background: Since 2000, the statutory pension insurance scheme has no longer provided a statutory entitlement to an occupational disability pension. It now only pays out in the event of full or partial incapacity for work. You are disabled if you are no longer able to carry out your previous occupation; on the other hand, you are disabled if you are generally no longer able to pursue any gainful employment.
Fear of losing labour due to psychological causes is growing
According to the study results, women are significantly more sensitive to the idea of becoming mentally ill during their working life and therefore no longer being able to work. 58% of women are currently concerned about this scenario - 15 percentage points more than in 2020. However, almost half (48%) of all men aged between 14 and 45 are also worried about no longer being able to work for mental health reasons. At the start of the coronavirus pandemic in 2020, this figure was less than a third (30%).
In fact, the proportion of psychological reasons such as anxiety disorders, depression, alcohol or drug addiction for receiving a disability pension is growing. "In 2000, 24.2% of the disability pensions paid for the first time were due to mental health problems; by 2020, this figure had risen to 41.5%," according to the German Pension Insurance Association.
Women assess risks more realistically
According to the GDV insurance association, around 25% of employees in Germany, i.e. one in four, will be affected by occupational disability at least once during their working life. However, only just under a third (29%) realistically assess this risk.
One in three men (34%) underestimate their risk of occupational disability and assume that it is less than 20%. Among women, this figure is only one in five (20%). Conversely, women tend to estimate the disability risk to be higher than it actually is. 39% of women assume that the probability of occupational disability is greater than 30%, although it is "only" 25%.
The higher the income, the better the cover
Money is undoubtedly a decisive factor when it comes to the willingness to make provisions. For households with a low income of up to 1,500 euros, the funds available for provision are scarce. Here, only 42% state that they have some form of financial security. The higher the household income, the higher the level of provision. In households with a monthly income of more than 3,500 euros, more than two thirds (68%) state that they make provision for the event of occupational disability or reduced earning capacity
Around 143,000 people have already insured their labour with MetallRente
In addition to company and private pension schemes, the MetallRente pension scheme also provides needs-based pension solutions for private occupational disability cover. In total, the portfolio of contracts for occupational disability, reduced earning capacity and basic capabilities increased by 2.4% in 2022 and currently comprises more than 143,000 contracts.
About the study
The opinion research institute Kantar Public surveyed 2,013 people between the ages of 14 and 45 on behalf of MetallRente for the study "What is the state of labour force protection in Germany?". The representative study was first conducted in 2020 and continued in a second survey wave in 2023.
Anke Dembowski is a financial journalist and author of various investment fund-related and other financial books. She is also a co-founder of the "Fondsfrauen" network.