Pension insurance in the test: Only three providers are really convincing!

Pension insurance in the test: Only three providers are really convincing!

Retirement provision through traditional pension insurance is a disappointment for many, as the current study by Stiftung Warentest shows. In a test that examined 14 classic pension insurance companies, it became clear that five providers were repaying less than the amounts paid in. What is particularly noteworthy is that no tariff received a “very good” rating; Only three providers managed to achieve a “good” grade. This raises fundamental questions about the suitability of these products as retirement provision, as the guaranteed pensions are generally low, which unsettles many consumers.

An example illustrates the problem: an insured person pays 200 euros per month over a period of 30 years, which corresponds to a total of 72,000 euros. However, five of the insurers tested were found to guarantee less than this amount back. This could be particularly problematic for younger insured people, as some of them will have to reach old age to get their deposits back. For example, it might be necessary to turn 92 in order to get the deposits back from Hannoversche.

Test winners and providers in comparison

Stiftung Warentest named Europa-Versicherung as the test winner. This is primarily due to their lean cost structure, which has a positive effect on returns. Hannoversche Versicherung takes second place, impresses with the highest guaranteed value of 111% of the deposit amount, i.e. 79,966 euros, but does not impress with sufficient flexibility and transparency, which led to a deduction in the rating.

The results of the test mean that, due to the low monthly pensions, many insured persons tend to choose a one-off lump sum payment instead of relying on the guaranteed pension payments. This behavior could increase in the coming years as dissatisfaction with the returns from traditional pension insurance policies continues.

In summary, it shows that the industry has massive challenges to overcome. The impression left by traditional pension insurance indicates that the products are urgently needed to be reformed in order to meet the expectations and needs of the insured. In this tense situation, many are hoping for a transparent and profitable solution for their retirement provision.

For further information on this topic, those interested can read the detailed reports from Business punk and Mirror see.