Critique by Foundation Warentest on Policy of Sustainable Investment Funds.
In the world of financial planning, sustainability is no longer a buzzword but a growing trend. The Institute for Pension and Financial Planning (IVFP) is at the forefront of this shift, providing financial advisors with an initial overview of which insurers are committed to sustainability.
According to the head of ratings at IVFP, life insurers are significantly improving their sustainability offerings. This is evident in the increasing number of index-linked annuities with sustainability ratings. These annuities, which offer tax advantages for savers with a term of 20 years or longer, are now available from several life insurers, including Allianz, Alte Leipziger, Continentale, Ergo Life, HDI, LV 1871, Standard Life, Stuttgarter, Swiss Life, WWK, Zurich Dt. Herold, Barmenia, Basler, Condor, Die Bayerische, Ergo Life, Hannoversche, Inter, Inter Risk, Münchener Verein, Neue Leben, Nürnberger, Swiss Life, Targo, Universa, Volkswohl Bund, and WWK.
Some of these annuities, such as Allianz Privatrente Invest Flex Green, Allianz Privatrente Invest Flex, Alte Leipziger AL Rente Flex, and Stuttgarter Flexrente Performance Plus, have excellent ratings. However, it's important to note that personal research is necessary to make a fully informed decision about a retirement product.
IVFP's fund policy sustainability rating serves as a starting point for this research. The ratings are based on the evaluation of the sustainability approach of the investment funds. In its recent investigation, IVFP tested over 90 tariffs from 41 providers for its current fund policy sustainability rating. As a result, the number of tariffs with top sustainability ratings has increased to 39.
While the ratings are a valuable tool, they are not the only factor to consider when choosing a retirement product. The Stiftung Warentest warns that index-linked annuities without capital guarantee may be expensive and should be approached with caution.
The German insurance industry is tapping into a future market by offering products in different shades of green. This trend is not limited to index-linked annuities. Some life insurers, such as Allianz, Nürnberger, and Zurich, offer Index-Linked Annuities with ecological or sustainable investment options integrated into their product portfolios.
IVFP's ratings help financial advisors consider customers' sustainability preferences in their advice. However, it's crucial to remember that the focus of IVFP's investigation is on the selection of investment funds. It's always advisable to consult with a financial advisor to understand the entire product structure and its implications.
In conclusion, the shift towards sustainable retirement products is gaining momentum in Germany. With more options becoming available, it's a promising sign for those who prioritise sustainability in their financial decisions. But, as always, personal research and professional advice are essential before making a decision.
