The pension reform in 2001, which at the same time led to a deterioration of the pension, created a pension gap in the statutory pension. You should close this gap as an insured person. Especially from the social group of expatriates, who only come to Germany in middle age, the situation can become quite critical.

ADVANTAGES OF THE RIESTER PENSION:

• welcome contributions (4% of gross and max. 2100€ p.a.)
• Tax benefits and allowances
• Hartz IV safe
• highest pension with the lowest net contribution for low to middle-income earners
• 30% capitalizable
• Guaranteed payment of paid-in premiums (fund investments without risk of loss)

To this end, the Riester pension was introduced as a new form of private, capital-funded supplementary provision. This particular provision is voluntary – the state provides a subsidy to encourage people to take out a Riester contract. If you pay a certain amount of contributions for this form of old-age provision, you receive bonuses for this and can, under certain conditions, claim these costs as personal expenses for tax purposes. A further advantage: state-subsidised old-age provision via a Riester contract is “Hartz-IV-fest”.

This form of investment is primarily unusual for employees. Its structure, which the legislator has defined through the state subsidy instruments, is aimed at people from all income brackets.

For expatriates who are married, the Riester pension is particularly interesting, as the spouse or partner also receives an allowance and support. It also has excellent tax advantages that far outweigh the disadvantages. The tax refunds are usually higher than the benefits and are a new investment, especially for top earners.