Hoarding cash will not be enough for many self-employed people as a pension. Fund-based basic pensions offer returns and security.
(Photo: IMAGO/Kirchner Media)
Dusseldorf For many self-employed people, there is no obligation to make provisions for old age. Quite a few put the topic on the back burner. The risk of being dependent on basic security benefits in old age is twice as high for the self-employed as for formerly dependent employees.
Politicians have been discussing compulsory insurance for years. The federal government is now planning an obligation for new self-employed people.
With the basic pension, commonly known as the Rürup pension, the self-employed can make provisions with the support of the state. The self-employed can claim up to 25,639 euros for the basic pension in their tax return for 2022. The tax office takes 94 percent into account.
From 2025, the self-employed can fully deduct the contributions. In return, pension payments are fully taxed in old age. The tax rate in old age is usually lower than during working life.
Top jobs of the day
Find the best jobs now and
be notified by email.
The experts from the rating agency Franke and Bornberg have taken a close look at the range of basic pension products for various categories for the Handelsblatt. The self-employed should seek advice. “Fund-based solutions, where the self-employed do not have a guarantee, offer the highest return opportunities,” says Michael Franke, Managing Director of the rating agency Franke und Bornberg.
Twelve of the 27 tariffs examined that were purely fund-oriented received the highest rating. In the ranking, financial strength accounts for 20 percent and the quality of the contract for 40 percent. The amount of the monthly pension also accounts for 40 percent if the return on the fund products is the same. So it reflects the costs. The ranking does not examine the quality of funds offered by insurers.
This is the best unit-linked basic pension insurance
Europa Lebensversicherung achieves the highest rating of “very good” with the tariff “unit-linked basic pension insurance tariff E-BRI”. She was the only one to get the highest score.
The methodology of the ranking
Investors can choose from 30 mutual funds. Funds must have a good rating and show good and stable performance. Savers can invest in up to ten funds. You can change or switch funds up to six times a year free of charge.
With the “Basic Care Invest TarifRB” tariff from HanseMerkur, the investor can choose between four strategy funds or make a free selection of funds. Five years before the start of retirement, the investor can reallocate the capital. “Regardless of how the capital market develops, the shares from the fund balance are gradually being reallocated to lower-risk investments,” explains Eric Bussert, Executive Vice President Sales and Marketing at HanseMerkur.
>> Read also: Ranking 2022 – These are the best private pension insurances
With the insurer Universa, customers can choose freely or opt for managed portfolios: Five years before expiry, the capital is shifted into secure investments, says Universa spokesman Stefan Taschner: “The customer can also deactivate the process management.” As with all providers, this will be the case Capital annuity for life. A one-off payment is not permitted.
More: Statutory health insurance is becoming more expensive – is private insurance now worthwhile?