DEVK prepares new models for private retirement provision

DEVK Versicherungen is adapting to Germany's upcoming reform of subsidized private retirement provision, which will come into effect in 2027. The Cologne-based insurer plans to launch two new subsidized products: a low-cost, ETF-based solution and a flexible guarantee concept. DEVK will also support its existing Riester customers with information and an online comparison calculator to aid their planning.

The proposed shift towards greater capital market involvement is viewed by DEVK as a significant step towards enhanced return potential and modernizing retirement savings. The company emphasizes its focus on hybrid products that combine guarantees with fund investments, particularly through cost-efficient ETF concepts.

Scheduled for launch from January 1, 2027, the two new offerings will cater to all customer segments, including those with existing DEVK Riester policies. One product will be a standard depot without a capital guarantee, designed for higher return potential via ETF investments, with costs anticipated to be well below the government's stipulated 1.0 percent annual cap. The second product, slated for release in the second quarter of 2027, will be an individual, subsidized retirement provision product based on DEVK's existing DEVK-Rente ZukunftPlus fund-linked pension plan, featuring various guarantee options and flexible contribution adjustments.

Both new subsidized products, alongside existing DEVK Riester contracts, will offer lifelong annuity payments or an installment payout plan extending to at least age 85. DEVK highlights the lifelong annuity as a distinct advantage over offerings from banks and fund providers. The insurer has begun informing its approximately 120,000 Riester customers about the reform and will soon introduce an online calculator to help them assess their current and future benefits.