Use Riester pension for financing?

it's great that you spoke out there...

I have to say, even though I am good with numbers, I think I signed up for Riester when it was fresh on the market, probably around 25 years ago. Over the years, I sank about €2,500 because I closed the Riester last year.


Let's be honest, who among the 8 million Riester savers really understands the product? Who only takes it out with friends and acquaintances (like me) because it's good for retirement.

Very few actually look at how and what the product is built on.

Unfortunately, you are absolutely right. By the way, I think that for the average person it’s not so bad to choose a fund-based option. But the average person also thinks stocks are devil’s stuff and the stock market is the gateway to hell. We are among the worst investors in Germany. We do save a lot but invest very poorly. Most of the money is tied up in low-yield life insurance policies or rots in checking accounts or savings books. So before putting your money into a life insurance policy or letting it rot in a savings book, a fund-based Riester is certainly not so bad.

You are unfortunately completely right. By the way, I think it's not so bad for the average person to choose a fund-based option. But the average person also thinks stocks are devilish stuff and the stock market is the gateway to hell. We are among the worst investors in Germany. We save a lot, but invest very poorly. Most of the money is tied up in low-yield life insurance policies or rots in checking accounts or savings books. So, before you put your money into a life insurance policy or let it rot in a savings book, a fund-based Riester is certainly not so bad.

The German insurance customer does not primarily think of stocks when it comes to Riester. It is sold to them that way. Then people think, "Wow, what a speculator I am, and I’m in on it."

In the end, they lure you with tax savings + subsidies. The annual statement is skimmed over, as I also did in the first years.

When I once brought up the costs, they said, "Man, you’re getting the subsidy, that makes up for everything." So I basically invested my money at 0%. In the end, I paid back all the tax benefits, which I also knew.

My ex-boyfriend got in touch and said: "Man, 10k, you can do something nice with that. I have a Rürüpp^^ here."

I kicked him out.

Well, most people simply don't know that this tax savings and subsidies are just a drop in the ocean. Many, by the way, recommend repaying the subsidies and tax savings before retirement to avoid annuitization. That could be worthwhile.

But honestly, maybe the thing with real estate is easier and better. I will also think about that carefully.

Would you prefer, instead of opening various threads for small amounts, to create one large thread in which all matters are presented holistically?

Then one can think things through as a whole. Separately, isolated from each other, the responses might not be wrong, but they will not be optimal or purposeful.

Well, most people just don't know that this tax saving and subsidies are only a drop in the ocean. Many recommend, by the way, to repay the subsidies and tax savings before retirement to avoid annuitization. That might be worthwhile.

But honestly, maybe the thing with real estate is simpler and better. I will think it over carefully.

Nonsense. Then I have only produced costs and lost even more money.

By the way, I am surprised that despite my rational aversion to Riester, no one has asked me why I still pay 2100 euros per year minus subsidies into this product.

Good question, I ask myself that too. They are two different things: On the one hand, for someone without Riester, the question is whether they should sign up. On the other hand, for someone with Riester, the question is whether to keep/cancel/suspend payments. A good part of the costs are, AFAIK, paid in the first years after signing the contract. Once the contract is running, it might be better to simply hang in there.