Building Savings with Riester

Building Savings with Riester

The pension discussion has been going on for years. Since 2002, the state with the Riester pension has ensured that private provision is also promoted. Six years later, another possibility was added to this reform: Wohn-Riester. Here can be obtained among other things with Bauspar contracts subsidy. Your own home is considered the best retirement for many workers. For those who no longer have to pay rent in their old age have secured their most important point. After the homeowner's allowance was abolished, Riester is now a way to encourage the construction of houses. This form of provision is the only one in which state subsidies before retirement can be used. Riester home savings contracts have become the most popular variant in a short time, to "riester". But the procedure is complicated.

The Principle of Wohn-Riester

Bauspar with Riester is worthwhile only for future homeowners, if the financing of the home stands even without the government subsidies on solid feet. Therefore, this form is more suitable for high earners and economically independent. Bauspar means to save a certain amount and pay interest. When this is ready for allocation, the building society grants a loan. With Riester, government allowances are added during the savings phase as well as in the repayment phase. Thus, the capital that can be used for the purchase of a property or house construction increases.

The conditions of residential Riester

Which building projects or real estate purchases are suitable for building savings with Riester, is defined in Article 92 a of the Income Tax Act because here are the terms "apartment in a home", condominium and co-operative housing. Accordingly, new buildings, the purchase of second-hand real estate and the acquisition of cooperative shares in housing cooperatives can be promoted. The Riester saver, however, must live in the apartment or the house itself.

These subsidies are now also possible for foreign objects, if the owner lives there, but pays into the German pension insurance. However, restrictions on Riester subsidies exist, for example, when a two-family house is acquired. Here, grants are only granted for the part of the house that is used by them. Excluded from the promotion are modernization and age-appropriate transformations. Energy-saving measures are also ineligible. If such construction work is planned with the house construction, then separate financing must be set up for it.

The entitled persons for residential Riester

Who compulsorily insured in the statutory old age pension insurance can save in principle with Riester. This applies to workers, civil servants, payees, child-rearing parents and compulsorily insured farmers. Also, recipients of a disability, invalidity or invalidity pension may use this route. However, self-employed are excluded from the promotion. Similarly, employees who are covered by a professional pension scheme (doctors and lawyers) can not save money with Riester. If the spouse pays contributions to the pension fund, but they can also use other ways Residential Riester.

The allowances in residential Riester

Again, the state part is divided into two components: the allowance and the tax advantage. The allowance from the state is as in all other Riester variants up to 154 euros basic supplement per year. 185 euros are added to each child for whom child benefit is paid. If it was born after 2008, even 300 euros per child will go into the fund. At the end of the year, the expenses can be deducted as special levies from the tax - up to 2100 euros - allowance deductible. The tax office then checks which part brings more to the saver: the allowance or the tax advantage.

The Benefits of Residential Riester

With this building-saving variant, especially families who have previously had to decide either on retirement or on a home ownership benefit. With Riester they can do both. Likewise, it is the only variant of the Riester subsidy, in which the subsidies can not be used by the state until retirement age. A normal housing promotion account would normally earn interest at two percent. With Riester, five percent can be achieved. Thus, an enormous interest advantage for the saver.

The disadvantages of residential Riester

Who wants to save with Riester bau, decides for a long period. Because the property may only be sold within a ten-year period, if no later than four years after a new property is acquired. Otherwise, the state gets back the money through tax credits. Also, the real estate market is not as safe as it once was. The prices for a house do not always go up - even down is always air in the real estate market. In addition, homeowners must always cover money for maintenance and age-appropriate facilities. These are not included in the promotion.

Artikelbild: © Alexander Raths / Shutterstock


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