Riester pension disappoints: only 132 euros per month

Riester pension disappoints: only 132 euros per month

Millions of people in Germany have taken out a Riester pension to provide for their old age. However, new statistics from the Treasury show that the payments are rather disappointing. The Riester pension is actually intended to help consumers build up capital for their retirement, but criticism of the Riester offers is increasing. It is criticized that the products help banks and insurance companies earn money rather than people who want to save for old age.

According to payout statistics from the Federal Ministry of Finance, those insured with Riester receive an average of only 132 euros per month in old age. At the end of 2022, over a million people have already received benefits from the Riester pension, but the results are rather meager. On average, those insured received 1,581.12 euros per year, with men receiving slightly more than women. The Federal Ministry of Finance assumes that the amounts will increase in the future because the savings phase was too short, while consumer advocates remain critical.

A study by Finanzwende found that Riester products cannot even compensate for losses in purchasing power. After deducting costs, the return is less than two percent and therefore below the inflation target. Of the 111 Riester and Rürup products examined, only a low return could be achieved, with high life expectancies and costs in the savings phase affecting profitability. In order not to lose money, insured people would have to get very old. The current products only offer a low possible return in the retirement phase.