It certainly is a classic product – life insurance that acts as a pension too. However, it appears that this classic may well have had its day - its popularity is severely waning.
Allianz Germany’s CEO Manfred Knof definitely thinks so.
“We still have such products on the shelf, but the customer does not buy them any more,” he told Dusseldorf’s
Rheinische Post. When looking at private pensions, classic pension insurance products have fallen below 10% of market share he said, and even in work provided pensions it was below 25%.
Last week’s announced reform of pension schemes by the Bundestag is incredibly important according to Knof.
“What Germans currently save on average for their old-age is not enough to live well in retirement,” he continued. As a pensioner, “as a rule 60-80% of their last net income is needed. At the moment, however, retirees generally have only 35-40%.”
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