Picking the Best: Only Three Private Pension Insurances Earn a "Thumbs-Up"
Three pension plans are deemed satisfactory
Let's talk retirement – it's crucial, yet can prove a royal pain to sort out. Many folks have opted for classic private pension insurance, promising a guaranteed interest rate on savings. But here's the catch: to secure that pension, you've gotta have a good run. Costs also play a significant role.
From 2025, insurers can only guarantee a maximum annual interest rate of 1%. However, remember that not the entire contribution earns interest. Insurers usually deduct their expenses, reducing the return.
Stiftung Warentest examined 14 classic private pension insurance plans, ensuring 90% of the contributions were secure at retirement. They sifted through popular providers like Allianz, Europa, and Württembergische.
Most Policies: Just "Meh"
Using a hypothetical case, they calculated pension amounts from providers, supposing a customer pays €200 monthly for 30 years (total €72,000) and starts receiving the pension at 67. They scrutinized investment success, costs, flexibility, and contract transparency.
The message: most policies receive only a "meh." The reason? High costs. Expensive insurers can't guarantee a swell pension.
Three policies earned the "good" rating. These are the "E-RCP" by Europa (2.2, guaranteed monthly pension 218 euros), "Hannoversche Bausteinrente R4" (2.3, 240 euros), and "Die Bayerische KlassikRente 25867" (2.4, 220 euros). Europa, our winner, boasts low fees, which aids performance. Allianz, a market leader, has high costs, reducing yield by a staggering 1.24 percentage points – almost four times Europa's impact (guaranteed monthly pension 204 euros, "satisfactory"). Hannoversche tops the payout, offering more than the total paid in, but falls short on flexibility and transparency.
If insurers don't shell out more than the guaranteed pension, you've gotta be over 90 to get your contributions back, even with a decent plan.
References:- zt.de- [awp-rating.ag/bbankiere)
- Retirement Provision
- Investment
- Pension
- Consumer Ratings
- Stiftung Warentest
- Classic Pension Insurance
- Pension Insurance Providers
In the context of retirement provision, it's important to choose a classic pension insurance policy that offers not just a guaranteed income but also considers factors like investment success, costs, and flexibility. According to Stiftung Warentest, three policies stand out for their low costs and performance – the "E-RCP" by Europa, the "Hannoversche Bausteinrente R4", and "Die Bayerische KlassikRente 25867". In terms of personal-finance and business, it's crucial to weigh these options carefully and consider vocational training to acquire the necessary skills for financial management. Finance experts suggest regularly reviewing community policy regarding retirement to ensure the best returns, even for those who engage in vocational training or run a business.
