Cautions on Choosing Private Pension Insurance: Allianz's Costly Guarantee Might Fall Short
Top-tier pension schemes that impress
Navigating retirement savings can be tricky. Classic private pension insurance with a guaranteed interest rate might seem like a safe bet, but is it worthwhile? The secret lies in living a long life and avoiding high costs.
Locked in legacy pension insurance contracts are widespread, offering a fixed interest rate, lifelong pension, and peace of mind for contributions invested by insurers. As of 2025, insurers can only promise a maximum annual interest rate of 1%, deducting costs before calculating the return.
To know how much providers can offer, Stiftung Warentest compared 14 classic private pension insurance tariffs, ensuring at least 90% of the paid contributions remain at pension start. The tested insurers range from market leader Allianz to Europa to Württembergische.
Most providers miss the mark: only "satisfactory" ratings
Considering a model calculation with a 200 euro monthly contribution over 30 years (total 72,000 euros), starting pension at 67, and evaluating investment success, insurer costs, flexibility, and transparency, most policies scored only "satisfactory".
High costs were the primary culprit for their modest performance. High-cost insurers can't guarantee high pensions. Three policies, however, earned "good" ratings: 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). Europa's low costs benefit the return, as costs reduce the return by only 0.32 percentage points, in contrast to Allianz's 1.24 percentage points (guaranteed monthly pension 204 euros, "satisfactory"). Hannoversche offers the highest guaranteed pension but falls short in terms of flexibility and transparency.
Customers must live past 90 even with a good tariff to get their paid contributions back if insurers don't pay out more than the guaranteed pension.
For the latest and detailed rankings, consult the Stiftung Warentest website or their latest reports and tests. Financial advisors may also be consulted for personalized recommendations. Happy retirement planning!
[Source: ntv.de, awi]
While the current rankings may not specify the most affordable and high-yielding private pension insurance policies rated by Stiftung Warentest, trusting this reputable consumer organization for financial product evaluations can help make an informed decision. Regularly checking their latest reports and recommendations is advised for achieving the best results in retirement savings.
Investing in a private pension insurance policy can be a tricky business, as high costs might significantly impact the return on investment. To find affordable and high-yielding policies, it's essential to consult the latest rankings from consumer organization Stiftung Warentest or seek advice from a financial advisor for personalized recommendations. Vocational training in understanding retirement savings and investment strategies can help make informed decisions on private pension insurance policies, ensuring better outcomes.
