Around 90 pension funds, also known as pension chambers, are public corporations that collect funds from their “compulsory members” to build up a funded pension scheme. But the pension cuts that have already been decided, as well as those that are foreseeable in the future, call the system into question. However, “withdrawal” is not an […]
Artikel zum Thema: Interest
Retirement benefits: Is it getting down to the wire?
Cancellation of valuation reserves Topic after the Bundestag elections / Losses of up to more than 15 percent For more than ten years, life insurance returns have suffered from low capital market interest rates. As a result, reductions of up to more than 30 percent compared to the expectations that were still being raised […]
Statements in Insurance Industry No. 15
Re: VW 13/2013, Company & Markets, Health Miscounseling: In about 90 pension schemes, also called Versorgungskammer, chambered professionals regularly become compulsory members. Their entitlements to funded pensions have already fallen sharply compared with earlier commitments and will have to fall further if interest rates remain low. It would be a mistake to rely solely on […]
Mistakes and pitfalls in real estate financing
Unsound proposals by intermediaries and financial houses for investors and builders In the last three decades, around one million German citizens have had a de facto junk property sold to them as an investment, primarily as a retirement provision. Very few are actually a case for the wrecking ball or the demolition expert, because they […]
Reduction of surplus in case of advertising with inflated example calculation inadmissible
– More than EUR 50 billion in additional claims possible for reduced maturity benefits – – Around 20 million affected with an average additional claim of up to more than EUR 10,000 per contract. Low interest rates destroy investment hopes for endowment life insurance policies For almost 10 years now, all investors in life insurance […]
Yield methods and rating liability II
Or rating liability when applying the capital commitment method? In our analysis of the internal rate of return (IRR) method, we found that the central IRR rate is determined using the discounting method. Here, one looks for the interest rate that makes the balance of the discounted return flows (usually the return flows are positive) […]
When the IRR return becomes a liability risk for the distributor
The IRR yield is based on an unrealistic calculation method. Bank advisors who do not inform their clients about this risk not only claims for damages. In the worst case, a reversal may occur. A guest article by Dr. Johannes Fiala and Edmund Ranosch. In a recent judgement of the LG Munich II (Az.: 9B […]
Return knowledge for lawyers
Among lawyers, the old adage still applies: “iudex non calculat”. But a few days ago, an article1 appeared in the business section of the FAZ, which, due to the headline, did not reveal the explosive nature of the author’s comments on the subject of yields. In everyday life we often use terms about whose meaning […]
Dr. Johannes Fiala: Rüruprente can be seized and terminated
If the lecturer for civil law and insurance law at the Dual University of Baden-Württemberg, lawyer Dr. Johannes Fiala (53, photo – Dr. Fiala) from Munich, invites people to seminars where they learn how to secure their retirement provisions and assets from seizures, he usually expects specialist lawyer colleagues who advise entrepreneurs. “But almost no […]
Private pensions: European Parliament increases the risk of insolvency
It was not only the financial market crisis since 2008 that led to the realisation that insurance companies need higher equity capital in accordance with the so-called Solvency II rules so that they can better bear a fall in the value of, for example, government bonds? 30% insolvency risk with Solvency II: If […]