What to do with the Riester pension insurance?

Hi everyone!

In my youthful recklessness, I took out a Riester contract in 2007. I haven’t been paying in for a long time, I only receive a kind of annual account statement. In the end, the balance increases by about €70 due to the guaranteed interest, which is actually quite a good interest rate given the current capital of €2800...

Since we will be building soon, I would like to know what I should do with it? Have it paid out as a residential Riester? Start saving again to repay a loan after 15 years?

Here are some key data: Married (33, 38) + 2 children (4, 2)

Single-family house new build €450k Labo/equity/EL €290k

Bank €160k (15 years, 5% special repayment)

I am aware of the pros/cons of the Riester, but I would like to be debt-free sooner and then pay a bit more tax in retirement, unless that would be too negative.

Thanks in advance Marvin

The 2800,- now bring almost nothing. Leave it, save it calmly and decide in 15 years when your fixed interest period ends. Or make a special repayment in 14 years with it or or. But taking it now I would find unwise. Karsten

So you would rather tend to invest in it with 4% gross? (But then switch to Wohnriester)

No, don't save, don't switch at all. You can also use it to repay a mortgage or home loan in 14 or 12 years, or even shortly before retirement. If it helps to get home ownership debt-free before retirement, that is a permitted use. Owner-occupied property. Another option is pension conversion. You don't need to make a Wohnriester out of it now. If you don't understand it, I didn't either, I then called the DRV Bund and got advice on what I am allowed to do with my Riester and what not. And what was said is allowed. Karsten

Ok great, thank you very much!

2007 was before the financial crisis.

Just because of the guaranteed interest, I would continue saving into that thing. Premium + interest should make the whole thing quite attractive. And that completely on the side.

So no conversion into anything.