How do I take out a Riester pension plan?
A Riester pension plan is a government-subsidised way to save for retirement. Here are the key steps:
1. Check investment options
Choose an investment form that suits your risk tolerance and life situation:
- Traditional pension insurance: Safe, but low returns.
- Fund savings plan: Higher return potential, but risky.
- Bank savings plan: Highest security, but low interest rates.
- Home Riester: Subsidies for owner-occupied property.
2. Choose certified products
- Only products with a BaFin certificate are eligible for subsidies.
- The certificate guarantees eligibility for subsidies but says nothing about quality or returns.
3. Compare costs and returns
- Have the potential returns and costs (e.g. initial fees) calculated.
- Use independent tests or advice.
4. Consultation and conclusion
- Discuss all details with your bank, insurance company or building society.
- Ask specific questions about allowances, flexibility and costs.
Special features of Home Riester
- Subsidies only apply to owner-occupied properties.
- Selling or renting out can trigger repayments.
Conclusion: Carefully compare offers and choose an investment form that suits your needs. Use independent advice to benefit from the Riester subsidies.
