Sales Argument # 1: The pension advice is free for you
In fact, most consultants earn nothing from a retirement plan advice . But at the mediation . That’s exactly where the problem is. Insurance agents or bank employees do not earn until they sell you something. Because then you get a commission for the mediation . The result is a reduced initial amount. So it’s less in the contract than you actually paid. That would certainly not be bad if the commission was manageable. But the commissions are usually so high (several thousand euros!) That you still years after your deposits run behind. Little in this world is free. But you can also complete retirement savings cost-effectively with so-called net tariffs .
Sales Argument # 2: Take a look at the drainage performance!
The termination benefit of a pension insurance is an extrapolation of the capital in the contract on expiry. Danger! It is not stipulated by law how these expiry payments must be calculated. Insurers do everything to deliver the most attractive numbers possible .
As it is not required by law, the model calculations (fund development of 3%, 6% and 9%) do not include the fund costs (1.9%) in the return. To achieve 6% performance, the funds would therefore have to achieve an actual performance of 7.9%. The investment costs are virtually swept under the carpet . A deviation of the real development of 48%.
Sales Argument # 3: Benefit from Tax Benefits and Supplements
Like everything else, old-age provision is only sold for benefits . That’s why “advisers” who pay for commissions never talk about costs. For the third time, they mention the benefits of tax savings and government subsidies . Danger! These advantages are regulated by law and providers independent ! Who concludes a Riester pension , benefits from allowances and tax benefits. The Rürup Rente also promotes self-employment by the state through tax savings. The benefits say nothing about the quality of the product offered. Much more interesting are the different costs of pension insurance policies.
Sales Argument # 4: Our cash investment strategy gives us a higher return than our competitors
When consultants are approached about the high costs of the contract, they often explain that because of the better cash investment strategy they would pay for. This would result in better returns that would offset the high costs . Danger! Almost always the markets beat the managed funds. Numerous studies have shown that only in rare cases fund managers manage to beat market returns.
Moreover, the intermediaries are ultimately insurance sellers, not investment specialists. If you justify high costs by managing your investment, you should make a written statement about how much better he will be than the market.
Sales Argument # 5: Location Advantage Liechtenstein or England
Some brokers praise their pension products by saying that the insurer is a Liechtenstein company, arguing that savers in Liechtenstein can not be expropriated. Do not be impressed or frightened by such an argument.
Almost all German insurers are protected by Protektor AG. In addition, there are certain insurance companies in Lichtenstein and England, which have particularly high costs of investing and the savers snub because they pay very high commissions to their agents . If you are wondering whether the tariff offered to you is a cost-effective fee policy or not, ask us. We will gladly disclose the costs in the contract. There are now lawyers who have focused exclusively on the “victims” of these contracts, as there are now so many.
Sales argument # 6: According to pension gap calculation you should save “more”
In retirement planning, agents like to calculate the pension gap that will arise in old age. Of course, it comes out that you have to travel much more monthly to maintain your standard of living when you retire. This is a form of anxiety that should encourage you to pay much more monthly. This makes it easier to persuade you to save 200 euros instead of 100 euros a month for retirement savings. And lo and behold – the agent has just doubled his commission ! Because his commission depends on the amount of your monthly deposit.
Do not be impressed by a pension gap calculation . A good intermediary advises you to save only what you can and want to afford . It makes no sense at all to complete a retirement plan with a high monthly deposit if you can not sustain the contributions. Any form of anxiety is inappropriate.
Sales argument # 7: Make a guarantee product, with funds you can lose all your money
This belief persists in the population because consumers with individual stocks have lost a lot of money. This can happen if you invest in individual companies and go bankrupt. With a good selection of funds you spread the risk. You can, but you do not have to, invest in stocks. You can also invest in real estate funds and government bonds. The broader the spread of risk across different funds worldwide, the lower the chance that one can make losses at all. The total loss riskexists only at the moment when all companies and all states issuing bonds are at the same time broke. If the world market collapses, then warranty products can no longer provide guarantees.
Compared to guaranteed products, funds have a much higher chance of yield – especially in the current low-interest-rate phase. If you have more than 17 years to pension, we strongly recommend that you take out a unit-linked pension insurance. The risk of total loss is a misconception in a wide-spread fund selection , which occurs only when all markets collapse. In such a case, the “guarantee” in a warranty product is no longer worth anything.