PRIVATE PENSION PROVISION
Plan your prosperity
Take advantage of our high-performance portfolios for private wealth provisioning
Private pension provision with Estably
We offer you the opportunity to use our high-performance asset management for your private retirement provision. To this end, we cooperate with established insurance companies based in the Principality of Liechtenstein. Our long-term value investing strategy is an excellent way to provide for your retirement. Due to the long investment period, you benefit from a high compound interest effect with manageable risk, because: the longer you invest in shares, the higher the chances of achieving profits with them.
Our society is getting older and older, while the percentage of the working-age population is decreasing. Thus, fewer and fewer working people have to take care of more and more retirement pensioners. In most cases, the amount of the statutory pension (1st pillar) is no longer sufficient to maintain the accustomed standard of living in old age.
Instead of relying solely on state or occupational (2nd pillar) provision, it is advisable to take the reins into your own hands and take out additional private provisions (3rd pillar).
The earlier the better. The longer you save up for the sum that will maintain your standard of living, the lower your monthly payments will be. In addition, there is the often underestimated compound interest effect, which makes your assets grow exponentially over a longer-term.
In addition, the longer your investment horizon, the lower the risk of saving with shares.
The amount of provision you make should depend on the size of your pension gap, your standard of living, and your financial possibilities. The pension gap is the difference between your last salary as a professional and the money you receive as a statutory pension.
Here too, the more you invest in your old-age provision in earlier years, the greater your compound interest effect will be in the long term.
Low interest rates
Classic life insurance hardly yields a return
With classic life insurance, you pay money into your pension account once or regularly to receive it again after the agreed term or in the event of death.
The amounts you pay earn interest at a guaranteed rate of 0.9% (in Germany). This guaranteed interest rate will be further reduced to 0.25% at the beginning of the next year¹. In addition, depending on the agreement, you will receive so-called surplus participation either on an ongoing basis or at the end of the contract. These are surpluses that the insurance company has earned with the assets entrusted to it.
¹https://de.statista.com/statistik/daten/studie/167936/umfrage/garantiezins-der-lebensversicherer-fuer-neuvertraege/ (abgerufen am 30.9.2021)
However, the surplus participation have been sparse over the last few years for two reasons:
Due to the low-interest rate level and the legal requirement that only a small part of the assets may be invested in shares, it is difficult for insurance companies to generate returns.
If surpluses are generated, they are first used to pay the guaranteed interest on existing policies. In 1999, for example, the guaranteed interest rate was still 4%. Due to the aging society, there are still many contracts with a relatively high-interest rate.
What used to be considered a popular investment is hardly attractive today due to the low-interest rates.
Strong performance leads to prosperity in old age
Due to the low return on traditional life insurance, capital market-linked life insurance policies are becoming increasingly popular. The return paid out at the end of the contract depends on the performance of the fund or portfolio in which the insured person invests by means of a one-off payment or recurring amounts. The additional costs incurred by the inclusion of a fund or asset manager are more than offset by tax benefits.
Instead of investing in funds, we invest in individual shares according to value investing strategies in order to increase your assets over the long term.
The longer you hold a stock, the more likely you are to make substantial profits on it.
Compared to unit-linked life insurance, our costs are lower – you get more return on your investment!
With a pension plan, you benefit from a number of tax advantages (e.g. omission of the final withholding tax).
In Liechtenstein, the insurance assets are part of the special estate in the event of bankruptcy and are protected.
Expertise from Liechtenstein
Our insurance partners
Your next steps
Start your old-age provision!
1. Select insurance
Currently, our strategies are offered at Liechtenstein Life AG, Nucleus Life AG and Vienna-Life AG.
2. Arrange a consultation
The advisors of our insurance partners ensure that you receive a solution that is optimised for you.
3. Opening of a depot
After you have opted for the savings option with Estably within the framework of the policy, the depot opening is carried out by the insurance company.
Do you have questions about private provision with Estably?