WE ARE - Wiener Städtische

»MORE AND MORE
PEOPLE ARE
INVESTING IN A
PRIVATE PENSION
PROVISION.«
44 ANNUAL REPORT 2010 | WIENER STÄDTISCHE
FOCUS ON RETIREMENT PROVISION
Confidence in the state pension system is falling but
the need for financial security and the desire to
maintain one’s standard of living
even in old age is increasing.
The demographic structure of the population
has changed significantly in the past
few decades. People are getting older. The
same is true for customers of Wiener
Städtische: 45% of customers are in the
age group 40-59 years and 25% in the age
group 20-39 years.
Financial Security in the Future
Life insurance is the most popular provision
instrument for securing the standard of
living in old age – ideal to make targeted,
long-term and safe provisions. On the one
hand, life insurance is a good investment
product; on the other hand, it covers many
risks. Traditional life insurance, for example,
offers a guaranteed rate of return and protection
in case of death; annuity insurance
policies cover the longevity risk and secure
lifelong capital requirements. Private pension
provision has developed into an indispensible
pillar in the pension system.
Change of Trend in Life Insurance
As a result of the financial crisis in 2008,
there was a trend towards fewer new life
insurance policies; in uncertain times,
decisions on long-term financial commitments
are naturally postponed. Given the
economic recovery, the needs of customers
for safe and conservatively invested provision
products are awakening again.
The life insurance market – in recent years
driven primarily by expectations of return –
is currently undergoing a transformation.
Products offering capital guarantees and
flexible investing in uncertain capital market
phases are gaining in importance. In
particular, traditional life insurance was a
branch of insurance in high demand in
2010.
In the coming year as well, private pension
provision will be a large thematic focus of
Wiener Städtische.
Top Trend: Government-Subsidised Additional
Pension Plans
Wiener Städtische Versicherung has been
offering its government-subsidised old-age
provision product, “Prämienpension”, since
2003. As a supplement to the state pension,
“Prämienpension” is an ideal product to
build an additional capital stock for old age.
More than 230,000 customers have already
opted for the “Prämienpension” and
more than a third of these customers are
under 30: this means that pension provision
is starting earlier and earlier.
When paid out as a pension, the premiumsubsidised
old-age provision product is
exempt from income tax and investment