Riester promotion increases: Soon there will be more money from the state

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news Riester promotion increases: Soon there will be more money from the state finanzen.de News always well informed Sunday, 04.06.17 , written by Juliane Wellisch The basic supplement of the Riester pension will rise. That's what the Bundestag decided. The legislative package to strengthen the company pension also implements the improvement of state-subsidized old-age provision. As a result, the basic allowance will be raised from 154 euros to 175 euros as of 2018. > Riester-Förderung steigt: Bald gibt es mehr Geld vom Staat More Riester pension: higher allowances and allowances in old age

The Riester pension will be more heavily funded by the state from 2018. For the first time in ten years, the basic allowance increases. Instead of 154 euros so far, there are 175 euros annually from the state . The increase applies to the insured person's allowance.

The child allowance is still up to 300 euros per year, as long as the child is entitled to child benefit. The new basic allowance will benefit all people who provide with the Riester pension for old age.

Tip: The new basic allowance is of little use if you choose an expensive Riester pension where the costs reduce the return. Request a non-binding and free offer for the Riester pension to get the most out of your private pension.

Riester pension: Better benefits possible through higher allowances

As a result of the higher subsidy, savers will have to pay a smaller contribution into their pension agreement in order to be entitled to the full allowances. A single-time job starter with a gross annual income of, for example, 24,000 euros should currently spend 806 euros per year (just under 67 euros per month) for the Riester pension, so he receives the full Riester allowance. With the new regulation, there will be only 785 euros from 2018. If savers do not pay their deposits, the better basic allowance increases the private pension that is paid out to them at the end.

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Double plus for low earners: allowances on Riester pension

In addition to the increase in basic allowance brings the new occupational pensions strengthening law a further improvement for Riester savers: low-income earners, who are dependent on the basic pension in old age pension at retirement because of a low statutory pension, the Riester pension no longer as previously completely on the social benefit to let. In future, the state-sponsored retirement is up to an amount of up to 202 euros per month qualifying free. In addition to low earners, people with an irregular work history like women who have interrupted their employment for the benefit of raising children for several years benefit from this.

Here are some tips and more information about the Riester pension. >

Juliane Wellisch

editorial staff

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