Riester race
The Riester pension is a special case within the private pension insurance and for many an entry into private pension provision. Anyone who invests four percent of the gross annual salary in a private pension scheme subsidiated receives 175 euros per year from the state (double-double) plus 300 euros per child (for children born before 1 January 2008 per year). Along the age of 25, an additional one-off state special grant of 200 euros will receive.
The Riester residence is reasonable for low incomes or for investors with children, but also attractive for better-earning employees and civil servants due to the high tax support.
-The basics Riester pension: attractive and safe Riester pension is a state-sponsored private precaution with which you can close your personal pension gap. It is safe and attractive at the same time: During active working life, you pay contributions to a private pension contract, a bank savings plan or fund, as an extra you will receive growing government allowances and tax breaks. Later, you will receive lifelong monthly benefits - in the form of a pension or a payment plan. However, a partial payment of up to 30 percent of the age assets is also possible; the benefit therefore does not have to be granted exclusively as a lifelong pension. In addition, up to twelve monthly pensions can be paid out in an amount as an annual pension. High returns through allowances and warranty interest In contrast to the statutory pension, where the contributions of the insured persons will return to the pensioners next month, your contributions to Riester pensions, including the state allowances, will be accumulated and later paid back to you in addition to a guaranteed interest rate. Thanks to the state support, the return on the Riester pension is usually above the interest rate for other forms of investment. The Riester pension is aimed at workers and civil servants Riester pension is particularly suitable for employees and their spouses who want to close their pension gap in order to be financially provided in old age. For self-employed persons and freelancers, the model of Rürup pension is particularly interesting because of the special tax deduction options.
-Funding amounts State allowances and tax advantages The promotion of Riester returns consists of two parts: State allowances are credited each year, and there may also be a tax advantage within the framework of the special expenditure deduction in the income tax return. Riester allowances The allowances are composed of the basic allowance and the child allowance: the basic allowance is 175 euros and 300 euros per child (for children born before 1 January 2008 185 euros per year). Tax deductibles are 2,100 euros per year. The tax office checks whether there is a tax advantage that goes beyond granting. 200 Euro bonus for young Riester-Saver In order to make the Riester return more attractive, especially for young people, the state under 25 years of age rewards with a one-off final premium of 200 euros. Funding up to 90 percent Depending on income and marital status, the proportion of funding in savings revenues reached around 30 to over 90 percent. Rule of thumb: The more children and the lower the income, the greater the proportion of state support.
-Who is encouraged? Riester promotion for all employees All statutory pension-insured workers and all civil servants, as well as soldiers and civilian service providers, parents on parental leave, voluntary pension insurance, marginal employees and unemployed are entitled to allowances and tax benefits for their Riester contract. State funding also receives the non-resusperity partners of employees who do not require pension insurance, provided that they decide on their own pension contract - e.g. the housewife married to a worker with their own Riester policy. As a self-employed person or freelancer, you are only entitled to state funding within the framework of a Riester pension if the spouse is subject to employment and has its own Riester policy.
-Limited flexibility The legislator has set guidelines for Riester products to ensure that the legal funding really benefits supply in old age. The private pension is safe The payment of the saving capital must be made as a lifetime monthly pension or as part of a payment plan with lifelong benefits. A maximum of 30 percent can be paid out as a principal amount. The pension may only be paid from the statutory retirement age (depending on the year of birth the statutory retirement age is between 65 and 67), with retirement at the earliest from 60 (for conclusion of the contract before 31 December 2011) at the earliest with 62 - see also the point "The pension phase" At the beginning of the payment, the paid-in contributions must be fully available, pension capital must be protected from attachment and assignments. Riester providers inform every year The investor must receive information about the account balance, use of capital, costs and income at least annually. The fees for the conclusion and operation must be distributed over a period of five years. In the event of the pensioner's death, the pension entitlement must be transferable to third parties. During the deposit phase, the investor has the right to change the provider. Existing contracts can also be included in the state funding if the aforementioned guidelines are integrated into the "old contract".
-Own provision important Anyone who wants to be provided for must be provided for The legal pension is in crisis. Fewer and fewer insured are paying for more and more pensioners, an end to the development is not in sight. Personal responsibility is more important than ever today - if you want to enjoy your life in retirement and be financially well served, you have to provide yourself in time. Lifelong pension - promoted by father state Riester pension is a form of private pensions. Private provisions also include capital life insurance, savings, the purchase of securities or residential property. The state supports private pension schemes through special grants and tax breaks. In contrast to the statutory pension, where the insured persons' payments will already be transferred back to pensioners next month, the contributions to private pension contracts, including the state allowances, are sold and later plus interest and compound interest will be paid back as lifelong pensions.
-The contribution phase Full allowances and tax benefits The full allowances and tax benefits will be granted to you if you deposit a certain portion of your salary into your Riester contract, including the allowances. The own contribution amounts to four percent of the previous year's income, but at least 60 euros per year. Minimum own contribution 60 Euro Especially for people with low incomes and children, it may be that the allowances are already so high that their own contributions do not have to be made in themselves. However, since the state support is only granted if the insured person also participates financially, a minimum contribution of 60 euros per year must be made in any case. Depositing flexibly - Use special payments from the boss As a customer, you can deposit as flexibly as your financial circumstances allow - however, regular contribution payments are recommended for an optimal retirement provision. Tip: Many use the employer's special payments at the end of the year to finance their Riester pensions.
-The pension phase Pension benefits possible from 60 As a rule, the payouts from Riester's care begin simultaneously with the statutory pension. As an insured person, however, you can apply for benefits from 60 (at the conclusion of the contract before 31 December 2011 - otherwise at the earliest at the earliest with 62); the monthly pension payments are then of course lower than when the pension begins to the statutory retirement age (the statutory retirement age is between 65 and 67, depending on the year of birth). With the start of the pension payment, a partial payment of up to 30 percent of the age capacity is possible; therefore, the benefit does not have to be granted exclusively as a lifelong pension. In addition, up to twelve monthly pensions can be paid out in an amount as an annual pension. Lower tax burden in old age Since Riester contracts are already being subsidised for taxes during the contribution phase, the subsequent payments are taxable at the individual tax rate. The tax burden is usually lower than in the acquisition phase, because the personal tax rate is usually higher during the active career period.
-The Right Agreement Finding the right way to find the right way in the jungle of pension products is not easy. If you want to close your personal pension gap with a Riester pension, you will find yourself a large number of suppliers with a large number of different products. Optimal support through competent advice Above all, the optimal use of state support is important for the choice of the right product. You should therefore not do without thorough advice.
-Riester: Citizens' money party Riester pensions also protected in case of unemployment Those who become unemployed for a longer period of time can be obliged by the Labour Authority to make their living expenses first of the dissolution of existing savings before there is a right to citizen money. This also applies, for example, to bank deposits, securities deposits and, within certain limits, to capital life insurance - but not to state-sponsored retirement provisions: claims from Riester contracts are protected against premature recovery in the case of unemployment, as far as they have been funded.