How to use the Riester bank savings plan?

2015-08-19 22:25:32

What needs to be considered here?

When entering retirement, the capital on the "Wohnriesterkonto" (virtually interest-bearing) must be taxed. In the case of Riester financing, the use of the house is strictly limited (sale and/or rental are harmful to subsidies).

Since you obviously do not need it, you should finance without Riester and simply continue the bank savings plan.

2015-08-20 07:50:30

Hello and thanks for the previous answers

The savings plan was taken out a few years ago (7 afaik) at Sparkasse Günzburg with a decent (more or less) interest rate available at that time. That’s exactly why I, like you also mentioned, am reluctant to use it for other purposes.

Let’s assume I convert this bank savings plan into a Wohnriester (I think it costs 50€), what could I sensibly do with it then? Would you simply use the max rate of 2100€ annually from there for financing, meaning I could already make special repayments for the next 7 years? The Riester would continue to run and I can declare the whole thing on my taxes every year accordingly or do I stop the payments there?

Sorry if I’m not expressing myself correctly financially, I don’t deal with finances in real life. The problem is the more I read, the more questions come up :/ (maybe someone has a book recommendation for me besides ISBN 9783868513295).

THANKS and regards
:)

my honest opinion on this is to leave the contract as it is. You probably took it out for retirement provision. Given the good financing situation, the 15k more "equity" doesn’t bring much either. If you have children, the contract benefits even more thanks to subsidies. We had/have our well-saved Riesters left as they are. I don’t want to have debt with the Riester either but rather have a good feeling of being done eventually

2015-08-20 08:07:58

Hi again,
thank you very much for your comments. I see it the same way and will leave the Riester aside for now for the planned financing.
Regards!

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How to use the Riester bank savings plan?

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