What is meant by redistribution in the pension fund? Am I affected by this?

Occupational retirement provision is based on the principle that all insured build up their own assets, which are used to finance their subsequent pension benefits. In the past decades, however, the framework conditions have changed fundamentally. Life expectancy has risen sharply, but interest rates have fallen. Since the pension benefits promised in the past cannot be adequately financed, a redistribution from the active insured to those receiving benefits is taking place.

This unwanted redistribution is a fundamental problem of occupational retirement provision, from which the insured of Vita are not completely spared. In order to keep redistribution as low as possible, we rely on a fair and flexible approach, and we regularly adjust the technical interest rate in line with market conditions. We also provide transparent information: On our website, we have set up a tool that shows how much you are personally affected by redistribution based on your age, salary and pension fund assets.

Vita Invest offers one way to avoid this cross-financing. With this solution, you set up your own pension fund with its own balance sheet and accounting - and your employees' pension assets are managed independently of the rest.