Straight Up: Only Three Pension Insurances are "Ballin'": Allianz Lags Behind
Three pension plans are considered superior in quality.
Saving for retirement is crucial but tricky. Private pension insurances are a common choice, but you might end up broke if you're hanging out with the wrong crowd. You want that guaranteed pension, right? Well, luck and longevity are key factors for those who aim to come out on top. Oh, and high costs, too.
Millions of folks have invested in classic private pension insurances with guaranteed interest rates on their contributions in the past. They promise low returns but guarantee fixed interest rates and a lifelong pension. These insurances are simple: after you sign on the dotted line, they manage your dough. But it's important to know that future contracts, starting from 2025, come with a capped annual interest rate of merely 1 percent. And guess what? Not all the customer's dough is interest-earning. Insurers subtract their expenses, which slashes the return even more.
Insider Tip Crappy Returns: Riester and Rürup Pensions
German consumer organization, Stiftung Warentest, put 14 classic private pension insurance tariffs to the test. These insurance giants include market leader Allianz and others like Europa and Württembergische.
Most Policies are Just "Meh": The High Costs are the Real Killers
In a model calculation, they looked at the guaranteed pensions of these providers if a customer pays 200 euros per month for 30 years (a total of 72,000 euros) and starts receiving the pension at 67. Investment success, insurer costs, contract flexibility, and transparency, were all evaluated.
Result: Most of the policies were merely "meh". And the main culprit? High costs. Expensive insurers can't afford to offer a high pension.
But hey, three times the quality rating was "good"! Look at these winners: the tariffs "Europa E-RCP" (2.2, guaranteed monthly pension 218 euros), "Hannoversche Bausteinrente R4" (2.3, 240 euros), and "Die Bayerische KlassikRente 25867" (2.4, 220 euros). The test champion, Europa, scores low on costs, which is good for the return. Here, costs knock off only 0.32 percentage points of the return, whereas big shot Allianz takes a full 1.24 percentage points (guaranteed monthly pension 204 euros, "meh"). The highest guaranteed pension is offered by Hannoversche. Despite being decent, it's weak in flexibility and transparency.
So, what happens if insurers fail to pay out more than the guaranteed pension at the end? Customers need to live for a century just to get their well-deserved savings back, even with a good tariff from the comparison. Yikes!
Sources: ntv.de, awi
- Tests
- Consumers
- Insurances
- Pension Insurance
- Pension
- Consumer Centres
- Stiftung Warentest
- Private Retirement Provision
Hot Tips:- Search for policies with low administrative fees and transparent costs.- Consider government-backed or certified pension plans like Riester or Rürup pensions for tax benefits.- Compare providers’ performance and fees through independent consumer reports or financial advisory services.
Remember, this article only provides a snapshot of the top low-cost private pension insurances according to Stiftung Warentest. For their latest and most accurate ranking, you should check the organization's official publications or website directly. Good luck, and happy savings!
To enhance your personal-finance and secure a sufficient pension, consider vocational training to improve your business skills, enabling you to earn more and invest wisely in community policy, such as low-cost private pension insurances. While navigating the world of pension insurances, be mindful of the high costs associated with many policies, as they can significantly impact your retirement savings.
