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 passed a law introducing the "Altersvorsorgedepot", a new type of retirement savings account set to replace the Riester pension plan, which will end on December 31st of this year. From January 2027, not only employees but also self-employed individuals and civil servants will be eligible for state subsidies.
The new scheme allows for annual contributions of up to €18,000, with the state adding 50 cents for every euro saved up to €360 and 25 cents for every euro saved between €361 and €1,800. Additionally, savers may benefit from tax advantages, particularly those with higher incomes, with potential tax refunds of up to €630 per year.
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.
