Status: 14.10.2023, 07:59 a.m.
By: Karolin Schäfer
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Concerns about poverty in old age are prompting many to take up private retirement provision. In a ZDF programme, financial advice on pensions was examined. The result is sobering.
Frankfurt – Despite retirement, more and more people are slipping below the poverty line. According to the Federal Ministry of Labour and Social Affairs, almost one in five pensioners over the age of 2021 was affected in 65. This prompts many to make private provisions for old age. In the ZDF program "WISO", financial advisors on retirement were therefore scrutinized more closely.
Financial advice on pensions in the ZDF programme in the test: Why commissions are problematic
Two decoys sought advice on retirement. The aim was to close the pension gap with appropriate retirement provision. In other words, the difference between the income and the money received as a state pension. A recommendation based on needs, risk tolerance and goals in old age was expected.
A total of three consultants invited the decoys. The conversation was observed on the show by Michael Herte, financial expert and consumer advocate. The first consultant came from a consulting firm that earns exclusively from commissions. According to the Baden-Württemberg Consumer Advice Centre, this is a problem, because: "Commissions prevent needs-based investment decisions," it says on its website. It even calls for a ban on commissions.
Financial advice on pensions in the test: Misinformation on the Riester pension
Given the commission, advisors would select products based on the amount of commission and not on the client's needs. In addition to false information that the Riester pension no longer exists, the first advisor on the show also failed on another point.
| State-subsidized retirement provision |
|---|
| Company pension scheme |
| Riester pension |
| Rürup pension (for the self-employed) |
There was no individual offer on site. The result after a few days: the pension gap was too large. The company pension was forgotten in the calculation. The consultant suggested a pension insurance on a fund basis, which was basically fine. For this, however, the consultant collects commission. He also showed interest in other insurance policies for women.
Financial advice on pensions on ZDF: Second interview can convince financial expert
The second consultant, who was remunerated via a fee, was more likely to convince the testers and financial expert Herte. True, he surprised with his suggestion to also work as a broker for commission. Overall, however, the decoys were satisfied.
In a ZDF broadcast, financial advice on pensions was examined. © Monkey Business/imago
It was recommended that a mother with two children and an income of 3500 euros net invest about 600 euros per month. The second decoy, who disguised herself as a young professional with a lower salary, was advised to pay into a call money account or set up a fund savings plan at a direct bank.
Financial advice on pensions: What consumers should pay attention to
The third advisor came from a bank and pointed out at the beginning of the conversation that in this case he could only offer offers from the financial institution's portfolio. However, he calculated the pension gap to be far too large. One of the reasons was that he had taken inflation into account, but only in terms of costs. "This creates a dramatically large supply gap," Herte explained.
The consultant advised both women to put 1000 euros into a unit-linked pension insurance, even though they are in different life situations. Herte considered it "problematic to put everything on one horse". It was only after two hours of deliberation that the consultant noticed that the savings rates were too high and that there was no buffer left in the end.
Overall, two out of three consultants failed the ZDF show. But what is important now when it comes to private retirement provision? Whether funds, real estate or insurance – there are different strategies depending on your life situation, age and risk tolerance. Herte recommended that before a consultation appointment, you should deal with the topic and find out about the options, for example at the consumer advice centre. Until now, the pension system in Germany has been financed by taxes and contributions. According to Labour Minister Hubertus Heil, a major pension reform is planned. (kas)