for Germans seeking to bolster their retirement savings, private pension insurance remains a popular option. A recent study by FOCUS MONEY Insurance professional, leveraging data from a rating agency, has identified leading providers in the German market. The analysis focused on two primary categories: policies with immediate payouts and those with a deferral period of twelve years. hannoversche was the only insurer to achieve a top-three ranking in both categories.

According to experts, supplementing statutory pension benefits with private insurance is crucial for maintaining financial security in retirement. It’s also not too late to start a private additional pension even in the later stages of one’s career.

Thorsten Saal (Image: Morgen & Morgen)

“Even at older age, the pension gap can still be closed,” says Thorsten Saal, Head of Mathematics and Rating at Morgen & Morgen GmbH (M & M).He suggests that immediate start or deferred classic pension insurance plans can be a sound choice for those prioritizing security.

Top Insurers for Sample Customers

The rating agency, FOCUS MONEY Insurance professional, evaluated the market to pinpoint the best offers for two hypothetical customers. the selection was limited to private pension insurers with a minimum three-star rating from M&M (as of Insurance Journal 16.12.2024).

M&M’s company rating system assesses insurers based on nine key metrics, evaluating their success, capital strength, and overall security. The analysts examined data from most German life insurers over the past five years.

“Even at older age, the pension gap can still be closed,” says Thorsten Saal, Head of Mathematics and Rating at Morgen & Morgen GmbH (M & M).

The Top Three Performers

The ranking highlights the top three products out of 27 evaluated for a 65-year-old investing 100,000 euros in an immediate pension with a dynamic payout and a ten-year guarantee period. Values are rounded to the nearest euro.

Rankings are based on the potential (non-guaranteed) pension amount in the first year.

The same criteria were applied to a 55-year-old making a one-time contribution of 60,000 euros, with a dynamic pension deferred until age 67.