What is it about?
Eligible Riester policies can receive allowances and tax support. The reform from 2027 changes the product range; existing policies and possible switches need individual assessment.
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How does a Riester pension work?
Riester combines a certified retirement contract with state allowances and potentially extra tax support. Under traditional rules, at least contributions and allowances must be available at payout commencement. Costs and guarantees affect potential returns. As at 2026, contracts concluded before 2027 have grandfathering protection; new subsidised products start from 2027. Switching is not automatically required.
How much are the allowances and tax benefits?
Under existing Riester funding, the annual basic allowance is €175. Each eligible child can bring €185 if born before 2008 or €300 if born from 2008. Directly eligible savers under 25 may receive a one-off €200 starter bonus. Contributions including allowances can generally be considered as special expenses up to €2,100. The tax office checks whether additional relief exceeds the allowances.
How much must I contribute?
For full allowances, directly eligible savers under existing rules generally contribute 4% of the previous year’s pension-insurable income, capped at €2,100 including allowances. Eligible allowances are deducted; a minimum personal contribution of generally €60 annually applies. Insufficient payments reduce allowances proportionately. Income, children and eligibility should be reviewed each year.
Who can receive Riester support?
A contract alone does not establish eligibility. Directly eligible groups include compulsory statutory pension members, certain civil servants and other specified groups. A spouse or registered partner may qualify indirectly under specific conditions, with a separate contract and at least €60 annual contributions. Self-employed people outside compulsory pension membership normally do not qualify directly. We check actual status.
Is a Riester pension worthwhile?
This depends on subsidies, costs, investments, term and eventual payout. Families with child allowances and lower-income savers may receive a high subsidy proportion, but expensive contracts can erode benefits. Review existing guarantees and funding history. The 2027 reform provides additional options; cancellation and an eligible transfer preserving subsidies are different actions with different consequences.
What should I check before signing or changing a policy?
Compare costs, guarantees, investments and rules for pauses, transfers and payout. A standing allowance application helps administration but does not replace reporting family or income changes. We assess new acquisition costs and existing guarantees. Products and support from 2027 should be compared explicitly with your current policy. Premature cancellation may trigger repayment of allowances and tax support.
How is a Riester pension taxed?
Payments funded by subsidised Riester contributions are generally taxed at your personal income tax rate during payout. A permitted partial lump sum is therefore not automatically tax-free. Unsubsidised portions can follow different rules; Wohn-Riester has special provisions. We plan expected net income and consider other earnings. Actual tax liability depends on your overall circumstances in the relevant year.
Who is it for?
For people with a Riester policy and those reviewing subsidised retirement provision.
What we look at together
- Subsidy eligibility and contributions
- Costs, guarantees and payouts
- Existing policy and reform options
What helps for our first conversation?
- Riester policy and statement
- Allowance information
- Income and family overview
Your topic is enough for a first message. We agree on a suitable way to exchange personal documents or medical details later.