Surrender value of the Riester pension
It is not uncommon for insured persons to terminate their life insurance or their Riester pension prematurely. In such a case, insurers pay out the so-called surrender value. In this context, all providers are obliged to disclose the basis for the calculation. What are insured persons entitled to?
The termination of the Riesterpension has a number of consequences. Since it is a form of government sponsored retirement provision acts, the state demands back subsidies. The insurer also often gives back less than the premiums paid.
Surrender Value - Calculation must be shown in detail
Years of practice by insurance companies has been to terminate an insured person Riester pension only to report a sum that represented the surrender value.
- Simply naming an amount of money and indicating that the calculation was based on recognized actuarial rules is insufficient. As an insured person, you have the right to have the provider calculate the surrender value in detail. Closing and cancellation costs must be displayed separately.
- The calculation of the surrender value results from the saved capital minus sales and acquisition costs plus generated surpluses. The insurer must take into account acquisition costs spread over the first five years of the contract. A broker is only entitled to a commission in full after five years. Special cancellation costs may not be charged.
- Merchants notify their customers of the amount of their savings credit once a year. In the insurance policy, you should include the information that is incurred in the event of termination costs find listed.
Before you terminate your Riester and want the money back, you should do some ...
Riester pension - reimbursement of allowances in the event of termination
- In the first few years after signing the contract, termination is usually associated with loss. There is hardly any surplus. Closing and processing costs are a burden on the credit. In the case of bank savings plans, these are usually lower than in the case of insurance contracts.
- However, there are other reasons that speak against premature termination of the Riester contract. The savings account for a considerable part of allowances. Already received allowances will be deducted by the insurer when canceling and transferred back to the state. Significant repayment amounts only arise after ten years or more.
As an alternative, an exemption from contributions is recommended in the event of financial problems. In the event of an unfavorably chosen contract, you should give preference to a change of provider over termination.
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