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Riester pension – these tips make private provision worthwhile


Residential Riester

The Home rent, also residential Riester you can use if you plan to buy or build a property that you would like to move into. Even if you already have a property, but this is still encumbered by a loan, you can use the residential area.

With this Riester variant, the overarching goal is rent-free living at retirement age. If you choose to take your own home pension, a home savings contract including state Riester funding is usually concluded and saved in order to later receive a low-interest, Riester-funded loan. With Wohnriester you have several possible uses, for example the purchase, the debt relief or the age-appropriate renovation of a property you use yourself.

The advantages: You paid off a Riester-funded loan faster because the allowances flow into the loan as a special repayment. This means that you can live rent-free in your apartment or house more quickly. Another advantage is the interest rate guarantee through the early rate fixation in the home loan – this provides planning security.

The disadvantages: The home pension must also be taxed at retirement age. This works through a so-called housing grant account. In a way, it is a fictitious account that is used to calculate your tax burden. In addition, a loan with a Riester link must be paid off in full before retirement, so that in individual cases you have a high monthly charge or a one-off, high transfer fee. If the home loan is also saved but not used, the pure interest on the credit is lower than with some alternative government-funded savings options.

Tip: If you are planning a construction or purchase project, compare various offers yourself or get advice from an expert, for example a mortgage lending specialist.

Our recommendation: If you are looking for a residential giant, you can get advice from various building societies, for example the Landesbausparkasse and Schwäbisch Hall various products capable of riester

Extra tip: If you want to use the variant of the WohnRiester, you can also use a mortgage broker like Interhyp, Dr. Small or go to PlanetHome. With just one appointment you will receive offers from various banks.

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