Riester pension: termination or alternative?

Riester pension: termination or alternative?

Many people are dissatisfied with the Riester pension payments, as the first Riester payment statistics from the Federal Ministry of Finance show an average of only 132 euros per month. This leads to concerns about whether a measly amount of pocket money is enough in old age. The financial and actuary Axel Kleinlein explains this problem.

However, when considering terminating your Riester pension, there are a few aspects that should be taken into account. Termination means that the government allowances and tax benefits must be repaid. Early terminations are classified by the law as harmful use, meaning the subsidies are lost. In addition, there are processing costs and the interest on the contributions paid must be taxed after they are paid out.

Nevertheless, there are alternatives to terminating the Riester pension. It is possible to leave the contract suspended without paying any further contributions. Changing providers is also possible under certain conditions and the credit can be transferred. The Wohn-Riester offers the opportunity to withdraw capital for residential purposes. In addition, the payout phase can begin early, from a certain age.

In special cases, terminating the Riester pension can be worthwhile, especially if the person concerned is seriously ill and the contract is still in the savings phase. In such cases, it may make more sense to have the assets paid out instead of using them for retirement planning to use them elsewhere or to inherit them.