Securing purchasing power in old age with return opportunities
A private pension scheme is absolutely necessary in order to reduce the income gap that the statutory pension leaves at the beginning of pensions – ideally to close it. In this way, the usual standard of living can also be continued in retirement.
It is also necessary to maintain purchasing power. This means not only saving, but achieving a return that is above inflation. A unit-linked pension insurance can take advantage of the opportunities offered by the capital markets and pay the built-up assets at the beginning of pensions – either as a one-time payment or as a lifelong pension.

Seizing growth opportunities
The difference between a classic private pension insurance and a unit-linked pension insurance lies in the way the contributions are invested. With the “classic”, this is very safe with a guaranteed receipt of the contributions and a minimum guarantee pension. In return, however, these guarantees cost returns and the assets that have been built up usually lower than in the unit-linked variant.

There, the contributions are invested in an investment fund or ETF that can seize the opportunities in the capital markets during the saving phase and thus build up assets that can maintain purchasing power at retirement age.

Flexibility in every situation
In order for retirement provisions to be able to react to different life situations, interim retirement and additional payments are just as possible for a unit-linked pension insurance as contribution adjustments or breaks. Likewise, the selected fund can be changed free of charge (usually once a year). This can be enabled to react to changing market developments and trends.

At the end of the savings phase, most unit-linked pension insurances automatically shift the structured assets to more secure investments (active process management) in order to bring the “sheep” into the dry drought for the start of the pension and not to jeopardise the assets at short notice by possible turbulence on the stock markets.

A unit-linked pension insurance combines the high growth opportunities of capital markets during the savings phase with a lifelong pension payment, no matter how old the insured is. In a consultation on pension provision, it is possible to determine exactly which products can be used to achieve the desired savings targets (in old age).