How much do I need to save annually to receive the Riester bonus?

The Riester pension is subsidised by the government through allowances and tax benefits. To receive the maximum funding, savers must meet certain conditions and make a minimum contribution.

How to achieve full Riester funding?

• Basic allowance: The basic funding is 175 Euro per year. There are additional allowances for children:
  • 185 Euro per child, born before 2008.
  • 300 Euro per child, born from 2008 onwards.
• Savings amount: To receive the full funding, 4% of the previous year's income subject to social insurance (minus the allowances) must be paid into the Riester contract annually.
• Minimum personal contribution: Regardless of income, the personal contribution is at least 60 Euro per year.

Calculation examples

1. Family with two children (born after 2008):

• Gross annual income: 40.000 Euro
• Required contribution (4%): 1.600 Euro
• Allowances:
  • Basic allowance for one parent: 175 Euro
  • Child allowances: 300 Euro × 2 = 600 Euro
  • Total allowances: 775 Euro
• Personal contribution: 1.600 Euro - 775 Euro = 825 Euro per year

2. Single person without children:

• Gross annual income: 30.000 Euro
• Required contribution (4%): 1.200 Euro
• Allowances:
  • Basic allowance: 175 Euro
  • Total allowances: 175 Euro
• Personal contribution: 1.200 Euro - 175 Euro = 1.025 Euro per year

Special conditions for spouses and parental leave

• Spouses: Non-eligible spouses can receive the basic allowance without their own contributions if the eligible partner has a Riester contract.
• Parental leave: Parents on parental leave acquire pension rights in the statutory pension insurance and must pay the minimum personal contribution of 60 Euro for Riester funding.

What happens with lower payments?

• If the required personal contribution is not fully paid, the government funding will be reduced proportionally.
• It is possible to temporarily suspend the Riester contract. In this case, the funding for the corresponding period will be forfeited.

 

Conclusion: The amount of Riester funding depends on your income and the amount of your contributions. The government allowances can make up a significant part of the savings and should be fully utilised. A tax programme or advice from your provider can help you.