How to cancel Wohn-Riester for a home or how to proceed?

I cashed out my standard fund-based Riester contract. Currently, it is dormant and I don’t know yet if I will pay in more until retirement. And if I pay in more, I will receive a pension later, which of course I have to pay taxes on. (But again: the benefits taken most likely exceed the tax payments in the future by a very large margin.)

Did you take advantage of this 3,000 euro rule? So at least 3,000 paid out and 3,000 must remain? What was the procedure there?

So everything related to "Wohnriester" is very abstract... because you can only make "estimates" here.

Whether it makes sense to do a Riester? Everyone should weigh that for themselves and have it calculated.
The advantage is, of course, that you
- can deduct the contributions for tax purposes (but you can also do that with other retirement provisions!)
- you receive state subsidies

In the end, it means that you save some taxes now, which you will probably have to pay in retirement (probably less income = less taxes!).

That does make sense.

But you should also pay attention to the costs of such products... because often sales costs amount to 6-10% of the paid-in capital (i.e. of the savings contributions + state subsidies).
As an example:
max. saving amount + subsidy = €2,100 per year
in 30 years you pay in that much (incl. subsidies) €63,000
and then in the first 5 years, sales costs of €3,780-6,300 flow? That means here you are constantly in the red for the first 10 years... it has already been 10 years before you start building capital...

And sure, Wohnriester has nothing to do with a building savings contract at first, of course you can also withdraw the credit for a self-used property from other "Riesters."
HERE in this CASE it is a building savings contract, where they even reduced the building savings sum so that it is immediately ready for allocation.

So overall:
You should provide for old age! No question.

You should just calculate which makes the most sense for you personally. (And when looking at the offers, take a good look at the fine print with sales costs ;)

Maybe considered this point: If inflation is now often over 2%, but only 2% is calculated in the Riester scheme, then it would definitely be positive and worthwhile to pay taxes much later, right?

if you have 2% inflation and pay 1.90% interest to the bank for financing, then it makes sense too... in real terms, it's 0%...

IN THIS CASE it is a building savings contract, where they even reduced the building savings sum so that it is immediately eligible for allocation.

Where do you read that from? Did I miss something?

Did you make use of this 3,000 euro regulation? So at least 3,000 paid out and 3,000 must remain? How was the procedure there?

No. I had everything paid out. But you can still put the contract on hold. Then you just start again from zero. But you don’t have to pay again the closing costs mentioned by .

The procedure was already described above. Everything runs relatively easy and the central grant office is easily reachable. Proofs can also be sent by email.

"Our advisor from the building society somehow twisted it so that he reduced the contract. The contract was already over 10 years old and had been regularly funded. We then reduced the building savings amount and the contract went straight into allocation."

Just noticed that it was someone else's post here in the thread...

I should better focus on the important topics, financing ;)

…and the 23 k euros also mean
- possibly a slightly lower interest rate for the financing
- no loan interest is paid on the 23k. (At 1% also 230€ per year plus possibly saved compound interest due to higher repayment)

Both effects must be taken into account in the pro/con calculation of Riester in the financing.