Riester Pension (ETF) | Subsidies for Families in Germany

The Riester pension is a popular way to save for the future with help from the German government. But there is a deadline: you can only start a new contract until December 31, 2026. After that, it will be replaced by a new system. If you already have one, it stays safe. In my online consultation, I show you how to get the most money from the state while investing in modern ETFs.

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At a glance:

Sarah's Story: Free money from the state for her children

Sarah moved to Germany for her job. Now she has two young children. She wanted to save for her retirement but also wanted to be safe. "Is Riester worth it for an expat?" she asked me.

We did the math: With two children, Sarah gets €950 every year for free from the government. Over 20 years, that is nearly €20,000 that she does not have to save herself.

We chose a modern plan where this extra money goes directly into ETFs. This way, Sarah has the safety of a guaranteed pension and the growth of the global market. Sarah says: "It feels good to know the state is helping me build a future for my family here."

Why Riester is still a great choice for Expats in Germany

The Riester pension has some unique benefits that make it very attractive, especially for families:

State Subsidies: You get cash every year for yourself and each child.
Tax Savings: You can get money back when you do your tax return.
100% Safety: The law says your saved money is 100% guaranteed.
ETF Growth: Modern plans let you invest in the stock market for higher returns.

Tax Advantages for High Earners

If you earn a good salary, Riester has another "turbo" effect. You can tell the tax office about your contributions. They check if you should get more money back through tax savings than you got through the subsidies. If yes, you get the difference back.

This makes Riester one of the few ways in Germany to reduce your tax while saving for yourself. In our Remote consultation, we look at your situation and find the best way to combine subsidies and tax savings.

Requirements for Expats

Valid German Address (Anmeldung)
German Bank Account (IBAN)
German Tax ID

Frequently Asked Questions (FAQ)

Who can still benefit from a Riester pension today?

Riester is very good for families with children because of the high subsidies (€300 per child born from 2008). People with a high income also benefit from tax savings within their tax return.

How high are the government subsidies exactly?

The basic subsidy is €175 per year. For each child born from 2008, you get another €300 annually. For children born before that, it is €185. A family with two small children gets €950 every year from the state.

Is my money safe with Riester?

Yes, Riester contracts have a 100% guarantee by law. This means all your own contributions and the government subsidies must be available for your pension when you retire. This offers a very high level of security.

Can I also invest in Riester with ETFs?

Yes! Modern Riester plans use ETFs. This way, you combine government money with the growth of the global stock market. You get the safety of the guarantee and the chance for better returns.

What happens if I change my job or become unemployed?

The Riester contract is personal. You can take it with you when you change jobs. If you are unemployed or on parental leave, you can pay a very small amount (like €60 per year) and still get the full subsidies.

Do I have to pay tax on the Riester pension in old age?

Yes, the payouts are taxed later. But since your tax rate in retirement is usually lower than when you work, you still save money overall. You use your high tax rate now to get savings and pay a low rate later.

Price Transparency

In Germany, insurance premiums are regulated by law. This means you pay the same price whether you buy directly from an insurance company or through a broker like me. My expert advice and personal support are already included in the premium – there are no extra costs for you.

Legal Note: The information provided here is for general educational purposes and does not count as personal advice or a binding offer. Insurance conditions may vary. For tailored protection, a digital consultation via video call is required.

Riester Pension: Secure Government Subsidies for your Family for Expats in Germany