The Riester pension and its disadvantages

What can be detrimental to the saver with the Riester pension?

About the Riester pension and their disadvantages, most suppliers of Riester products are of course not very fond of talking, so you should In this regard, you often have to inform yourself which aspects are not so positive and have a negative impact can.

• A disadvantage of the state subsidy is the very little flexibility in terms of the later disbursement. Because the customer and contract holder receive a lifelong monthly payment, while the payment of the credit in one sum is not possible or can only be done to a smaller proportion of the total capital.

• Many savers see another disadvantage in the fact that the contract can only be signed with the age of 60 at the earliest. Year of life or soon only from the 62nd Years of age (due to the gradual increase in the standard retirement age) can be paid out. On the other hand, if the contract is terminated earlier, all allowances received will be lost.

• The full taxation of the benefits received is definitely one of the disadvantages associated with the conclusion of a state-sponsored savings contract. In a gradual increase, it has already been determined that the pensions received are to be taxed in full at a later date.

Which disadvantages can still occur in practice?

• The Riester pension can have other disadvantages, for example for low-wage earners. The payments that you will later contain from the subsidized savings contract are then transferred to the Statutory pension payments are taken into account if you need a so-called basic security because the income is not sufficient. You would, however, receive this basic security without including the savings contract payouts, so that you would have saved "for free" as it were.


Riester pension or independent savings - which is the better alternative?

As an employee, you have had the opportunity for many years to ...

• Should the already accumulated credit from the savings contract be needed prematurely, even if it In the event of an economic emergency, the entire funding received must still be repaid will. It can also be disadvantageous that the contracts may neither be borrowed nor pledged.

• Another negative factor is the fact that the calculated pension payments assume a relatively high life expectancy. Savers often only get back more than what they have paid in when they are 80 years old or even older. In addition, the funding is lost if you move to a country outside the EU.

So, in addition to the advantages that the Riester subsidy naturally brings with it, there are quite a few advantages that you as a saver should consider. It is not uncommon for a savings contract without government funding to be more lucrative.