Riester Pension: The Established Classic with a 100% Guarantee
The Riester pension has been the foundation of state-subsidized
retirement savings for families for decades. Even after the launch
of the new
Pension Depot
in 2027, it remains a key pillar: thanks to legal grandfathering
rules, savers secure lifelong subsidies and a full capital
guarantee. It is the ideal model for those who prioritize maximum
security for their family. (Note: New contracts are legally
possible until Dec 31, 2026).
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At a glance:
Sarah's Story: State subsidies 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
Is the Riester pension being discontinued?
Yes and no. New Riester contracts can only be signed until
December 31, 2026. After this deadline, it will be replaced
by the more modern
Pension Depot. However, all existing contracts are fully protected
(grandfathering) and can be continued for life with all
subsidies and tax benefits intact.
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.
How much do I need to pay to get the full Riester subsidies?
To get the full subsidies, you must contribute at least 4%
of your previous year's gross income (minus the subsidies)
into the contract each year. The maximum personal
contribution that is supported is €2,100 per year. If you
pay less than the required amount, the subsidies will be
reduced proportionally.
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.
Legal Note: The information provided here is for general educational purposes, non-binding information, and orientation. It does not constitute individual advice or a binding offer. Daniel Hüsken accepts no liability for the accuracy of the information. Insurance conditions may vary. For tailored protection, a digital consultation via video call is required.
Secure Subsidies?
Let's check together how much funding is possible for you and
your family – of course high-performing and on an ETF basis.
