Retirement provision: life insurance with higher interest rates - trend upwards. Expert forecasts and recommendations for current interest rates.

Retirement provision: life insurance with higher interest rates - trend upwards. Expert forecasts and recommendations for current interest rates.

According to a report by www.zeit.de, retirement savers can expect higher interest rates on life insurance after years of doldrums. The first insurers, including Allianz Leben, have already increased the current interest rate for the coming year. Experts expect the current interest rate to rise to an average of around 2.45 percent, compared to 2.2 percent in the current year. This indicates a gradual upward trend in the market.

Increasing the current interest rate can have a positive effect on pension savers as they benefit from higher returns. However, consumer advocates still see “room for improvement” as the increase is not in proportion to the returns on overnight deposits.

The increase could also have an impact on the market as it could potentially encourage more customers to invest in life insurance. The increased demand could influence supply and lead to new products or adjustments to existing insurance policies.

However, it is important to note that increasing the current interest rate could be a lengthy process as insurance companies cannot abruptly turn around their long-term funds. Rising interest rates could also lead to a reduction in the value of bonds on insurers' balance sheets, which could create additional challenges.

In summary, increasing current interest rates could have a positive impact on retirement savers, but also potentially impact the market and industry as a whole. It remains to be seen how developments will continue in the coming years.