Wiener Städtische increases total interest on life insurance to 2.5 percent

Wiener Städtische increases total interest on life insurance to 2.5 percent

According to a report by www.ots.at,
After a phase of low interest rates that lasted more than ten years, Wiener Städtische increased its total interest rate on life insurance from 2 to 2.5 percent. Manfred Bartalszky, CEO of Wiener Städtische Versicherung, emphasizes that the increase in key interest rates is an important step towards normal monetary policy and that this will finally offer customers a higher overall interest rate again, which will stimulate private pension provision in general and classic life insurance in particular.

The importance of private financial provision remains at a consistently high level, as a survey shows. 85 percent of Austrians consider it very important to make private provisions. Due to demographic change and the state's tight budget situation, more and more people see an additional monthly income in the form of a supplementary private pension as important and essential. Classic life insurance offers a guaranteed pension that is paid out for life, something that cannot be achieved by any other financial product.

The insurance industry has addressed concrete demands on politicians in order to promote motivation for private provision. These include halving the insurance tax, tax incentives for sustainable investments and an increase in the tax-free allowance for company pension schemes, which has not been valorized since 1975, to 1,200 euros. According to Bartalszky, this would be an important signal to anchor awareness of private provision among the general population.

Increasing the total interest rate on life insurance to 2.5 percent could lead to more people opting for this form of retirement planning as it becomes more attractive compared to other forms of investment. This could lead to increased competition in the insurance industry as other providers may follow suit. It could also have a positive impact on the capital market environment as more funds could flow into long-term investments.