Pay out Riester pension at age 60? Early payout, disadvantages and exceptions

Pay out Riester pension at age 60? Early payout, disadvantages and exceptions

According to a report by www.t-online.de, the Riester pension is usually paid as a monthly pension and is paid out from the start of the pension. An early payment at the age of 60 is generally not possible. Only 30 percent can be paid out as capital. It is possible to pay out the entire capital in full at the start of retirement, but it has disadvantages as the state funding has to be repaid and taxes are incurred.

As a financial expert, it is important to analyze the effects of early payment of the Riester pension. Early payout results in losses and it can only make sense if there is still enough money left after the subsidies and taxes have been repaid. In addition, the monthly pension payment is reduced if an amount of 30 percent is paid out early.

It is therefore advisable to let the Riester pension continue until it is paid out regularly in order to receive state support and tax advantages. An exception is the small contribution pension, in which small monthly contributions are paid and which can be paid out under special conditions.

Overall, it is important to take your individual financial situation into account and, if necessary, seek professional advice in order to make the right decision regarding the payment of the Riester pension.