Good Picks for Classic Pension Insurance: Europa, Hannoversche, and HanseMerkur Take the Lead
Three pension plans are considered "solid" or "reliable"
Heading into retirement might seem like a distant dream, but planning for it is a wise move. But where should you park your hard-earned savings? Traditional private pension insurance may not always be the most profitable choice. To reap benefits, you've gotta live long! Plus, high costs can eat away at your savings.
Pension insurance? A necessity, but tricky. Many have previously opted for classic private pension insurance with a fixed interest rate guarantee. They might not yield big returns, but they assure a steady interest rate and a lifetime retirement income, with minimal hassle. The insurer handles your money once the contract is signed.
However, from 2025 onwards, insurers can only promise a maximum annual interest rate of 1%. Not the entire contribution is interest-bearing. Insurers first subtract their charges, impacting the return.
Recently, Stiftung Warentest scrutinized 14 such classic pension insurance plans, ensuring at least 90% of the contributed sum remains intact by pension age. The insurers tested range from market leader Allianz to Europa to Württembergische.
Most Policies Middling: High Costs the Culprit
In a comparison, we calculated the guaranteed pensions of these providers if a customer invests €200 monthly for 30 years (€72,000 in total) and starts receiving the pension at 67. We evaluated investment success, insurer costs, contract flexibility, and transparency.
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Outcome: Most plans were merely "satisfactory." The primary issue? High costs. Costly insurers can't guarantee a generous retirement income.
Only three times did the quality rating soar to "excellent." These were the tariffs "Europa E-RCP" (perceived quality score: 2.2, monthly pension guarantee: €218), "Hannoversche Bausteinrente R4" (2.3, €240), and "Die Bayerische KlassikRente 25867" (2.4, €220). Europa clinched the top spot with low costs that boost the yield. Here, costs trim the yield by just 0.32%, while Allianz shaves off a whopping 1.24% (monthly pension guarantee: €204, "satisfactory"). Hannoversche offers the biggest guaranteed pension, though it lags in adaptability and transparency.
If insurers fail to beat the guaranteed pension amount, customers must live well into their nineties to retrieve their total contributions. Even with a good tariff, the model customer requires being over 90 to achieve this.
Source: ntv.de, awi
Additional Insights:
Based on the latest evaluations by Stiftung Warentest, top-performing tariffs for classic private pension insurance are led by:
- Europa E-RI - Known for its low costs and solid performance, it's a budget-friendly choice for customers.
- Hannoversche Bausteinrente R4 - Although not the cheapest, it boasts a relatively high guaranteed payout of €79,966, surpassing the total contributions of €72,000 over 30 years. However, you should live to be 92 years old to outdo the total contributions.
- HanseMerkur Vario Care Invest R 2025M - Also rated as "good" by Stiftung Warentest, specific details about its cost-effectiveness are not detailed in the available sources.
These options excel due to their performance and economic structure. Europa, however, stands out for its low costs.
In light of the recent analysis by Stiftung Warentest, some of the top-performing classic private pension insurance plans include Europa E-RI for its low costs and attractive performance, Hannoversche Bausteinrente R4 for its high guaranteed payout, and HanseMerkur Vario Care Invest R 2025M, also rated as "good" in terms of performance and economic structure. Personal-finance management is essential when preparing for retirement, and considering the costs associated with various pension insurance plans can significantly impact your personal-finance and business goals. It's worth noting that vocational training may be necessary to navigate the complexities of these financial products, as understanding the intricacies can lead to better investment decisions and ultimately a more secure retirement.
