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.