For most people, the statutory pension in Germany is not enough to keep up their usual standard of living in retirement. The pension level keeps falling while life expectancy rises. This combination makes private retirement provision a necessity. Private pension insurance (private Rentenversicherung) is a proven and reliable way to close this gap and create financial security in retirement.
Private pension insurance is a form of life insurance in which regular contributions are saved and, from the agreed start of the pension, a lifelong monthly pension is paid. The lifelong payment is what sets pension insurance apart from other forms of saving: however long the insured person lives, the pension is paid until death. This so-called longevity risk, the risk of living longer than your savings last, is passed on to the insurance community, which gives you a unique and predictable safeguard.
Germany has several forms of private pension insurance. Classic pension insurance offers guaranteed benefits and profit participation with a fairly conservative investment approach. Fund-linked pension insurance invests the contributions in investment funds and offers higher return opportunities with correspondingly higher risk. Hybrid products combine both approaches and are designed for different levels of risk appetite. There is a suitable product for every type of investor.
Private pension insurance is for all working people who want to provide for retirement in addition to the statutory pension. It is especially important for self-employed people and freelancers, who are not compulsorily insured in the statutory pension scheme, and for everyone who wants to start building a supplementary pension early and use the compound interest effect.
When taking out private pension insurance, return opportunities and guarantees, the policy's cost structure, flexible options and the tax treatment of payouts are important criteria.
We help you find the right product for your personal situation, so that your retirement can be shaped by financial independence and enjoyment of life.
PrivatRente benefits
Lifelong guaranteed pension payments, or a one-off lump sum, or a combination. Flexible options: additional payments, capital withdrawals, contribution suspension. Survivor protection and occupational disability (BU) cover as add-on modules. Start of benefits freely selectable (max. age 85) and changeable later.
Contribution payment: single premium, continuous or shortened.
Tax: for the pension, only the income portion (Ertragsanteil) is taxable (age 65: 18%). Lump sum after 12+ years and from age 62: 50% of the gain is tax-free. No contributions due to statutory health or long-term care insurance for compulsory members.
Provision concepts: KomfortDynamik (balanced), InvestFlex (growth-oriented, funds/ETFs), IndexSelect (index participation), Perspektive (security-oriented).
