Fixed int. rate for pensions to decrease in 2015 (Hamburg)
From the 1st of January Protected content , the highest interest rate for newly signed “Retirement” policies, will decrease from 1.75% to 1.25%
This interest rate is an important criterion when signing up for pension and occupational disability insurances. Because of this interest rate decrease, the premiums, for example will increase for Occupational disability insurances for younger applicants by up to 8%.
By classic pension products, not only will the guaranteed pension pay out decrease, but also the built in pension including the profit sharing will suffer against the monetary values of today.
The lowering of this guaranteed interest rate is valid for all policies applied for and accepted after 1/1/2015. Pension products that are signed and accepted in Protected content keep the “old” 1.75% guaranteed interest rate for the duration of the policy.
Depending on the insurance company, this interest rate of 1.75% in Protected content also apply to dynamic payments/increases, one off payments and individual premium increases.
A 30 year old person, who signs up for a standard “Basis Rente” (see info’s on Basis Pension in another thread) in Protected content , running the policy to 67 years old, investing €300 per month, would be guaranteed a monthly payout at 67 years old of roughly € Protected content be slightly more, could be slightly less, depending on the insurance company). That could go anywhere up to a non-guaranteed value of approx. € Protected content month. Remember, that € Protected content NOT guaranteed. The approx €560 is.
Now, taking the same person, using the same values (€300per month, Basis Pension to 67 years old), but signing up in Protected content , that would be a guaranteed monthly payment of roughly € Protected content here, this figure could be slightly more, or less). That could go anywhere up to a non-guaranteed value of approx. €1100per month. Remember, that € Protected content NOT guaranteed. The approx €540 is.
So for the same amount of money that you pay in, you get about €20per month (guaranteed) less paid out to you in Protected content you would do if you had gotten this done in Protected content . That might not sound a lot, but it doesn’t make sense to pay the same amount for less.
Again, please get yourselves professional advice when it comes to signing up for these types of pension. There are different types of products out there and these need to be discussed on a one to one basis.
I hope that helped