Alternative to the Riester pension

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Are there alternatives to the Riester pension? Since the government introduced the taxation of pensions, the Riester pension has become uninteresting for many and they are looking for alternatives.

There are alternatives to the Riester pension.

The Riester pension model

That the "normal" pension for your retirement provision is not enough, you know exactly how millions of workers have been for years. Years ago, it was named after the financial expert Walter Riester so that every employee can take care of part of his / her retirement provision himself Riester pension brought to life. Here you pay a certain amount into this special deposit every month in order to receive a financial subsidy from the state of 154 euros at the end of the year.

However, around 70% of investors now consider the Riester pension to be out of date and too complicated, because it initially takes time to fill out These savings contracts have been around for a very long time and every year you as a saver have to reapply for the annual government subsidy place. In addition, the Retirement Income Act was introduced in 2005, according to which every type of pension is taxed at 50% from now on. It is already clear that by 2040 at the latest, 100% of this entire income will have to be taxed. So there is already no doubt that this means that every type of pension is taxed at least twice.
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The alternatives to the Riester pension

Since the Riester pension is a rather rigid structure, there are far better alternatives to Riester pension, which also bring a higher interest rate and at the same time secure Investments are. The pension fund is a very good alternative to the Riester pension, because here the monthly payments are only used in secure financial investments and bring a much higher return.

Another alternative to the Riester pension is a capital life insurance with a return of 8.25% with a deposit of 5000, - Euro, fixed for 5 years and means a total of 2432, - Euro interest gain. This type of deposit is also safe and by no means speculative. In comparison, the overnight money for the same amount with the same term and an interest rate of “only” 4% yields at least 1083 euros interest charges.

In addition, there is also the fixed-term deposit account, which can show an even higher return than the overnight money. However, with these types of investment it always depends on the term. If, for example, a term of 6 months is selected, the current highest interest rate is 5.25%. In addition, the amount invested is increased by a further percentage using a so-called compound interest calculation. You should inform yourself well beforehand and not just get offers from your house bank.