How much are allowances and special expenses for Riester?

Those who pay a minimum annual contribution into their Riester contract receive the full bonuses. The amount of the bonuses and tax benefits depends on the following factors:

Type of bonus	Amount of bonus	Requirements
Basic bonus	175 Euro (from 2018, until 2017: 154 Euro)	Full entitlement if the minimum personal contribution (4% of gross annual income) is met.
Child bonus	185 Euro (children born before 2008) 300 Euro (children born from 2008)	Child benefit entitlement required. Bonus is automatically assigned to the mother but can be transferred to the father upon request.
Special expenses deduction	Maximum 2.100 Euro per year	Personal contributions and bonuses count as eligible expenses. The deduction is made as part of the income tax return.

Example:

A couple with two children (born 2010 and 2007) receives the following bonuses in 2018:

• Basic bonus spouse 1: 175 Euro
• Basic bonus spouse 2: 175 Euro
• Child bonus (born 2010): 300 Euro
• Child bonus (born 2007): 185 Euro
• Total: 835 Euro

The minimum personal contribution (4% of gross income) is reduced by the bonuses, so the remaining savings amount is lower.

Tax benefits:

• The special expenses deduction applies to bonuses and personal contributions.
• Even if no bonus is applied for, the bonus entitlement is considered in the favourable assessment.
• It is not possible to exclude the bonus and instead use only the tax advantage.

Conclusion: The Riester bonuses and special expenses deduction make retirement provision particularly attractive. To take full advantage, the minimum personal contribution should be made and the bonuses applied for.