– When a funded pension would be comparable – The Deutsche Rentenversicherung Bund (DRV) lets its insured know that voluntary contributions in particular lead to an annual pension of 5.18%. In many cases, it is nonsensical to compare returns, as this would require consideration of the increasing payouts, including increasing life expectancy. The answer […]
Artikel zum Thema: Return on investment
No State guarantee
The amount of the levies due when a “Riester pension” is paid seems unclear. Why the capital is not secure with this form of pension. In October 2008 the Chancellor said “We tell savers that their deposits are safe. The federal government also vouches for that.” – Which, for lack of a legal basis, is […]
Rürup pension: Researcher criticizes high costs
The costs for commission and administration eat up a large part of the return on the Rürup pension, calculates a Chemnitz professor. The customer usually has no idea what is going on – the information in the product information sheets is going in the wrong direction. Link: http://www.procontra-online.de/artikel/date/2017/10/ruerup-rente-forscher-bemaengelt-hohe-kosten/
Is the Riester pension really safe?
If the Federal Council does not yet apply the emergency brake, the Occupational Pensions Reinforcement Act will enter into force on 1 January 2018. In this context, the Riester pension will also be upgraded. During the savings phase, the basic allowance increases from 154 to 175 euros per year. For company Riester pensions, the SV […]
Variants of immoral insurance contracts
Insurance products supervised by the Federal Financial Supervisory Authority (BaFin) may also be null and void on the grounds of immorality. This then also applies to the contract with consultants and agents. The investor therefore has no claim to be protected from receiving false advice: A release from liability without any financial loss liability (VSH). […]
OLG Cologne: Double acquisition costs in life insurance not permissible
The Higher Regional Court of Cologne (OLG Köln, judgement of 02.09.2016, file no. 20 U 201/15) forbade a life insurer to charge Riester customers double acquisition costs – once costs with a maximum rate of 2.5 percent (previously 4.0 percent) of the premium volume spread over five years, and in addition further costs over the […]
From bank(s) and casino bets
How does case law help financial institutions to pass on miscalculations? The regulations on the elimination of the basis of business in the German Civil Code (BGB) can be an approach to reorganize financial institutions in distress. For example, when building societies terminate the higher-interest deposits – sometimes with success. An insurer could terminate […]
PKV: Impossible escape from rising premiums
There are many factors contributing to inflation in private health insurance. For example, charges for cross-subsidisation for the basic, standard and emergency tariffs. Those who have concluded their private health insurance before 01.01.2009 can also change to the standard tariff – the others only to the basic tariff. The lack of the insurer’s (VR) right […]
Commentary: When private and occupational pensions cut provision
Survivors rub their eyes when the survivors’ pension of the German Pension Insurance (DRV) is reduced to zero after three months. Marriages entered into after 2002 or those where both spouses were born after 1962 are affected by this provision. In these cases, 40 percent of the additional net income is offset, i.e. deducted […]
External division of occupational pension rights
With regard to pension equalisation, there is currently (still) the possibility of “external splitting” of company pension schemes (bAV), for example in the event of divorce, Section 17 of the German Pension Equalisation Act (VersAusglG). Affected are direct commitments (also known as pension commitments) as well as rights against a relief fund. The beneficiary spouse […]