Retirement Provision: How the Riester Successor Can Be Worth It 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.
The German government has approved the "Altersvorsorgedepot" (pension savings depot), which will replace the Riester pension scheme set to end on December 31. The new scheme, starting in January 2027, will allow not only employees but also self-employed individuals and civil servants to benefit from state subsidies. The depot offers a state subsidy of up to €540 per year, with an additional tax benefit that increases with the individual's tax bracket.
Experts expect banks and financial institutions to promote the scheme, particularly to high-income earners, as it can provide significant tax advantages and potentially lead to substantial long-term savings.
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.
