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

Thank you for your answers.

The most sensible thing in our situation is to convert the Wohnriester into a normal Renten-Riester. That is supposed to work. We would not have used the Riester for the financing/loan but ultimately for the garden and just thought that the amount saved over the years could be received 1 to 1.

The amount is now of course missing in the calculation but can certainly be financed through a normal loan, if at all.

The disadvantages for us with a Wohn-Riester and this Wohnförderkonto are simply too great.

whether that is the most sensible thing can't be said so generally. Have you actually had a proper consultation about your situation and the [wohnriester]? Somehow it seems like you just signed up for it back then and now want to change on a whim.

So you didn’t use the [wohnriester] for the property purchase? Then what is the problem from the original post?

Why external facilities and not as a normal component?

What do you mean by 1:1 not working?

To me, it also sounds like you were never really given proper advice. It’s not exactly easy, and many come with catchy platitudes that don’t address the individual problem at all.

What do you mean by 1:1 not working?

I think he just wanted to cancel the contract, have the saved-up money paid out, and then never hear anything about it again.

whether this is the most sensible thing cannot be said in general. Have you ever properly consulted about your situation and the Wohnriester? Somehow it seems that you just signed up for it back then and now want to switch on a whim. So you didn’t use the Wohnriester for the ETW? Then what is the problem from the original post? Why outdoor facilities and not as a normal component? What do you mean by 1:1 not working?

No. The Wohnriester was not used for the ETW. It was signed up back then, contributions were made diligently, subsidies and interest received, nothing more. Well, if we activate the Wohnriester now, i.e. pay it out, we commit ourselves to use the house for at least 20 years or keep it as owner-occupied property. That will not be the case for 50%. As I understand it, we pay 2% interest on the amount every year until retirement and then another tax on that. Since we still have to work for several decades, that will eventually add up to a nice sum. We thought you could simply get the amount paid in including the subsidies and interest paid out. With the above-mentioned "disadvantages," that doesn't make sense.

To me, it also sounds like you were never really advised properly. It’s not exactly easy, and many come with trite platitudes that don’t address the individual problem at all.

I think he just wanted to cancel the contract, have the saved-up money paid out, and then never hear anything about it again.

That’s exactly how we want it. But that only works with massive deductions.

Misinformed is putting it mildly; rather, with 30 years you have different ideas about life than with 40 years.

As I understand it, we pay 2% interest on the amount every year until retirement and then another tax on that. Since we still have to work for several more decades, it will eventually add up to a nice amount.

No. And this is exactly what I mean by saying that you are never properly advised. The strange numerical examples from here did not help either. Even though he wrote a lot of correct things otherwise.

You do NOT pay 2% until retirement. The amount (€23,000) of your home promotion account grows by 2% annually. All by itself. You don’t have to pay anything into it. At first, this is actually to your disadvantage because the taxable amount increases during retirement.
But it doesn’t really increase, because the 2% is only to offset inflation.
I already calculated it above. At today’s value, you have to pay about €170 per year in taxes on the Wohnriester account in retirement. Per year!
Or €2,100 in one lump sum.
You will never again get €23,000 that cheaply. You can calculate how much interest you pay on a €23,000 loan over several decades. (To make it precisely comparable, you could of course also deduct inflation from the interest payments).

And to perhaps clear up a misunderstanding: you also pay taxes during your retirement if you do not take any payments now. Or if you conclude a different pension contract. Everything is taxable.