Retirement provision: How the Riester successor can be worthwhile for high earners
More can be paid into the old-age pension depot than is necessary for the subsidy. In retirement, the tax rates are then low - but sometimes they are paid dearly.
Germany has passed legislation introducing the Altersvorsorgedepot, a new type of retirement savings account set to replace the Riester pension plan, which ends on December 31 this year. The new scheme allows not only employees but also self-employed individuals and civil servants to benefit from government subsidies starting January 2027.
The accounts offer a government subsidy of up to €540 per year, with an additional tax benefit that increases with the individual's tax bracket. Experts expect the accounts to be popular, particularly among high earners, with one example showing that a total of €250,000 could be accumulated over 30 years with a €1,800 annual payment and a 6.5% return.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
