Homeownership considered key to private pension planning

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More than 1,000 people were asked their thoughts on different aspects of homeownership as part of the 2007 Genworth Financial HomeOwnership Study conducted by Research International. Respondents were divided into two groups, the first one being a representative sample of Germans between the age of 20 and 50 and the other one consisting of Germans who had either purchased a property in the previous two years or who intended to do so in the foreseeable future.

Homeownership as an important pillar of private pension planning

The need for private pension planning is an important part of the public debate in Germany. More than 60 percent of the representative sample said owning a property was one of their preferred means of providing for their financial security during retirement. This figure increased to 80 percent when considering only the number of existing homeowners and those people interested in buying a home in the foreseeable future (i.e. sample group 2). The majority of all respondents said that the importance of homeownership as part of their private pension planning had increased over the past five years. Over 70 percent of all respondents specified "not having to pay rent at retirement age" as the main advantage of homeownership.

Participants in the research ranked homeownership as a method of private pension planning significantly higher than other forms of investment; almost two thirds of the representative sample said they would prefer to buy a home than for example to participate in the Riester retirement programme or to buy life insurance. Despite this trend in opinions, the homeownership rate in Germany is still very low, and, at 43 percent, is one of the lowest in Europe - second only to that of Switzerland. Abolition of state subsidies

The financial burdens associated with a property purchase are seen as one of the main barriers to getting on to the property ladder. Many people, especially young couples or families, see the 20 percent deposit required by most German banks as a significant obstacle to purchasing their own home. In addition, one in five respondents confirmed the abolition of state subsidies, such as the homeowner's allowance, as constituting yet another deterrent. The survey showed that the majority of those interested in buying a home and affected by the abolition of state subsidies, either postpone their plans or opt for the acquisition of a cheaper property.

Homeownership is increasingly becoming one of the most important pillars of financial retirement planning not only for young families with children, which undoubtedly play an important socio-political role, but also for singles and childless couples. "People want financial security and independence as they grow older and owning their own home is crucial to their plans," said Matthias Dous, Managing Director Central Europe for Genworth Financial's Mortgage Insurance business. "However, some of the financial burdens associated with property purchase, as highlighted by our survey, mean that many people do not yet have the confidence to buy their own property."

About Genworth Financial

Genworth Financial, Inc. is a leading financial security company meeting the retirement, lifestyle protection, investment and mortgage insurance needs of more than 15 million customers across 25 countries. In Europe, Genworth partners with banks, brokers, advisers and other financial institutions to develop innovative mortgage insurance and payment protection products. For more information, visit www.genworth.com

About Mortgage Insurance

Mortgage Insurance (MI) protects lenders and investors in the event that a mortgage borrower defaults on a loan and the proceeds of the sale of the property are insufficient to pay the outstanding debt. Our MI products enable lenders to provide the end borrower with earlier and potentially more affordable access to home ownership by allowing them to put down a lower deposit.

About Research International

Research International is the world's largest group for ad hoc-market research with offices in over 50 countries and with more than 2500 employees. In Germany, the institute, with offices in Hamburg and Frankfurt, is ranked among the top five market research companies and looks back on more than fifty years history. Research International offers quantitative and qualitative market research which helps clients recognize the needs of their target groups at an early stage. The main research covers the areas `Innovation´, `Communication / Brand Experience´ and `Market Strategy´. Research International is a company of WPP since 1989. www.research-int.com

Issued by Genworth Financial Mortgage Insurance Limited through its German branch, registered office: Im Mediapark 8, 50670 Cologne. Genworth Financial Mortgage Insurance Limited is incorporated in England (registered number 2624121) and regulated by the Financial Services Authority of the United Kingdom.

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Genworth ist ein führendes Versicherungsunternehmen und bietet mehr als 15 Millionen Kunden in 24 Ländern Leistungen in den Bereichen Lebensversicherungen, Altersvorsorge, Kapitalanlage und Hypothekenversicherungen. Weitere Informationen finden Sie unter www.genworth.de.

Genworth's europäische Hypothekenversicherungssparte wird durch die Genworth Financial Mortgage Insurance Limited mit Sitz in 80 Strand, London WC2R 0GR betrieben. Diese ist in Großbritannien durch die Financial Services Authority genehmigt und wird von dieser beaufsichtigt.