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Fund-linked
Pension insurance (ETF)

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Fund-based pension with ETFs

Since the statutory pension may not be sufficient for retirement, you should also consider taking out private retirement savings. Insurance policies such as annuities or life insurance offer a worthwhile option. These types of insurance come in various forms, including the option of a unit-linked pension insurance. With this type of insurance, your capital is invested in exchange-traded funds (ETFs), an investment vehicle that is currently gaining popularity. This is due to the low effective costs and the ability to participate in the capital market without front-end loads.

The fund-based pension is based on an (ETF) fund savings plan that allows you to reallocate funds free of charge.
Over a longer period until retirement, you have the chance of attractive returns, although you are subject to the natural fluctuations of the capital market.
This form of fund-linked private pension scheme offers you the opportunity to effectively close your pension gap – especially in times of low interest rates and high inflation.

Why a unit-linked pension insurance?

Today's reality shows that relying solely on the statutory pension is often insufficient to meet the diverse needs of retirement. This is precisely where unit-linked pension insurance comes in – it offers the opportunity to close the existing pension gap and ensure that you can maintain your standard of living in old age.

The effects of the so-called Silver Society, meaning the increasing aging of the population, are undeniable. As a result, the number of retirees is steadily rising compared to the working-age population. This demographic trend has a long-term impact on pension levels, which have already decreased noticeably in many countries. To mitigate this gradual decline and take control of your financial future, it makes sense to invest in additional private retirement savings early on.

For the self-employed, the question of retirement is even more pressing, as they are often not covered by the statutory pension insurance. In this case, private retirement savings are absolutely essential to guarantee personal financial security in old age.

Our unit-linked pension insurance offers you the flexibility and opportunities you need to meet these challenges. Let our experts advise you and actively shape your future – for a carefree retirement.

How does unit-linked pension insurance work?

The structure of a unit-linked pension insurance policy offers you the opportunity to benefit from promising opportunities in the capital market – and all this with minimal setup costs. Over a long investment period, the insurer invests your capital in a variety of funds – a selection tailored to your individual preferences. This also allows you to benefit from the compound interest effect, which is barely noticeable with traditional investments due to the current low-interest-rate environment and associated costs. Although this alternative does not offer a predetermined pension amount, the potential returns are significantly higher.

Different insurers offer various investment options, each with its own set of costs. Furthermore, you have the freedom to choose from a range of fund categories according to your risk tolerance and to reallocate your investments free of charge if needed. To mitigate potential losses due to a stock market crash shortly before retirement, your insurer will automatically shift a larger portion of your pension assets into safer asset classes as you approach your retirement date.

The development of the capital market can be impressively seen in the German Stock Index (DAX). Since its introduction in 1988, the DAX has gained an average of approximately 7.5 percent annually.

What does unit-linked pension insurance offer?

Higher return opportunities depending on risk class: By foregoing a guaranteed annuity factor, this type of annuity can achieve a higher return than a traditional annuity. The focus here is on capital growth. This represents an excellent method for building capital. However, there is also the option of choosing the "safe" version with a guarantee.

flexibility: The accumulated sum can be paid out as a lump sum or a monthly pension at the start of your retirement. Depending on the contract, flexible adjustments are possible, for example, regarding the contribution amount. Voluntary additional payments or contribution holidays are often an option. Furthermore, you have the freedom to choose your own ETF portfolio. This allows you to determine, to a certain extent, how much risk you are willing to take. The desired retirement start date is also entirely up to you.

Tax advantages: Unit-linked pension insurance offers tax advantages. While you don't receive direct government subsidies like with Riester or Rürup pensions, you only pay a comparatively low tax rate (withholding tax) on the income portion. This applies to a wide selection of funds.

The greatest potential of a pension insurance policy with ETFs therefore lies for investors in the return, the compound interest effect, the flexibility regarding the withdrawal plan and the tax advantages during the payout phase.

What is a unit-linked pension insurance?

A unit-linked pension insurance is a form of retirement provision where your contributions are invested in investment funds to save capital for your future pension.

What are the advantages of a unit-linked pension insurance policy?

Advantages include higher return opportunities compared to traditional pension insurance, flexibility in contribution structuring, the possibility of individual fund selection and potential tax advantages.

What role does risk tolerance play?

You can adjust your fund selection according to your risk tolerance. A higher risk tolerance can lead to potentially higher returns, but also carries higher volatility risks.

Can I customize my posts?

Yes, many unit-linked pension insurance policies offer flexibility with contributions. You can often make additional payments or suspend contributions.

When will the pension be paid out?

The payout usually takes place at a fixed retirement date. You can choose this date individually, depending on your contract.

What role does tax treatment play?

During the savings phase, you benefit from potential tax advantages. Pension payments are subject to taxation during the payout phase.

What are the potential returns of a unit-linked pension insurance policy?

The potential returns depend on the performance of the selected investment funds. Historically, unit-linked pension insurance policies have achieved attractive returns over the long term, especially with broad diversification.

What distinguishes a unit-linked pension insurance from other retirement savings products?

Unlike traditional pension insurance policies, the unit-linked version is based on investment funds, allowing you to benefit more from the opportunities of the capital market.

Is there a minimum term for a unit-linked pension insurance policy?

Yes, there is usually a minimum contract term that you specify when you sign the contract. You also decide when you want to start receiving your pension.

Is a unit-linked pension insurance policy a good idea for self-employed people?

Yes, especially for self-employed people, a unit-linked pension insurance can be an important supplement to the statutory pension insurance.