The corona crisis increases the pressure on the retirement of the Germans. Not directly, but indirectly. The findings of a recent study by the DZ-Bank. The demographic change will overwhelm the German pension system, a minimum of out - and very probably, was before the pandemic is clear. Without increasing contribution rates and, above all, significantly higher Federal subsidies, it will go on permanent hardly. Both of which would be to the detriment of the young Generation, as well as a possibly higher retirement age.

The corona crisis is exacerbating the Situation due to the massive increase in state debt in addition. At some point the taxpayers will have to be asked, increasingly, to the Fund or the contribution rates must be screwed to the top, otherwise the state pension in its current structure cannot be financed anymore.

For years, the principle applies, therefore, If possible, then private, with provisions. But, of all things, to capital-funded pension variations, such as life insurance, it affects the corona crisis has had a particularly negative. This is not, of course, to the Virus itself. Rather, to the as a result of the economic collapse is probably a very, very long time to manifest interest numbered low, because the capital-funded pension put "out of caution and partly due to legal framework conditions, especially on pensions", in the DZ-Bank study.

GDV In the fall of 2019, after passed the capital investments of life insurance, a survey of the General Association of the German insurance industry (GDV), to values of 83.7 percent from different bond. This corresponds to around 800 billion euros. Share played, however, with a share of 5.1 percent, hardly a role. Added to this were other investments (6.3 percent), real estate (3.5 percent) and others (1.4 percent). The Rally in the stock market or the real estate boom went over, like, go to the life insurance, while the current rate of interest for any insurance companies in Germany, an average of about seven percent (in 1996) declined to approximately two percent (2020). The guaranteed interest rate has decreased from four to less than one percent. With the stock recommendations of the Bernecker exchange-compass, you can get more out of your money! (Partner activity) 30 days free to try!

And could even go further back than that. By the end of 2019, the German actuary Association (DAV), the German Federal financial Supervisory authority (BaFin) has recommended a reduction to 0.5 percent. In the case of the DZ-Bank also expects that the guaranteed interest of the BaFin could be set in the coming year, "even lower than recommended" firm.

the "long-lasting, Extremely-low-interest-rate period, the interest rate phase is in the case of safe bonds such as government bonds become a Negative", is the interest-on-interest effect as an important pillar of the capital funded pension system is largely broken away, - stated in the publication of the Frankfurt money house. The longer the phase of low interest rates continued, the more painful would miss the missing interest income in the structure of the pension assets. At the same time this is forcing the households, "to save a higher portion of their disposable income for the age, if you want to continue to reach the originally targeted level of Provision".

tend to be endures The phase of low interest rates in the Eurozone, in the meantime, for ten years. In July 2008, the current yield was of fixed-income securities in Germany at 4.8 percent. After that, it went steadily downhill. 2016 was registered for the first Time, a negative average return. The European Central Bank (ECB) lowered its interest rate for main refinancing operations, further and further, currently commercial banks get funds at zero cost and pay interest to the ECB, if you store excess cash at the Central Bank.

On the corona crisis, the monetary authorities have now responded again with a flood of money and the so-called pandemic emergency purchase program (PEPP) decided. The Overall Value Of 1.35 Trillion Euros. A noticeable increase in the interest rate level is placed with this new, extreme easing of monetary policy in the distant future. Add to that the spending programmes of fiscal policy, the state debt to explode. A country such as Italy would, accordingly, even slight increases in interest rates in a consortium needs to be able to his debts at all to operate. The low-interest-rate phase, she tends to infinity. Successfully in the largest financial market in the world with the signal service Devisen100 act. (Partner offer) for a signal service 30-day free trial!

From the beginning of the above-mentioned reasons, the private pension however, the need of the hour. However, it is the asset mix towards a higher share to reconsider proportion. The goal, writes the DZ-Bank, should be a "better Mix of the pension, with a higher weight of funded variations and a better use of the yield opportunities in equities". Life insurance in any case, the corona crisis has made – how they work, currently – once again, a whole lot less attractive.

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*The post "interest rates will always be lower The life insurers have a 800-billion-Euro Problem" is published by the stock exchange on Sunday. Contact with the executives here.