Termination of a Riester pension - you must pay attention
Those who opt for a Riester pension usually do so in the long term. But life does not always go the way it was planned. In some cases it may be necessary to cancel one of the various Riester pensions. Many customers feel wrong advice, others find Riester not flexible enough or have discovered other offers that are more attractive.
In principle, a termination of a Riester pension is always possible. But the customer should pay attention to the fact that he usually takes a loss business into account. Likewise, the retirement is endangered by the resolution. A termination should therefore be well considered.
This happens at the termination
Who resigns a Riester pension, should be aware that all state allowances and tax savings must be repaid. Depending on the duration of the previous contract can bring together such a huge sum that the saver must post as a personal loss. In addition, termination fees must be scheduled. The fees already paid at the conclusion of the contract are also not repaid - these are lost to the saver.
This makes the termination of a Riester pension to an expensive company. Nevertheless, the dissolution of the contract is always possible. In principle, the notice period is three months before the end of the current contract year. But especially in the first months of the contract, the notice period may be longer. This is specified in the relevant documents and can be read if necessary. With the termination, the customer waives the supplementary pension in old age, which of course no longer be paid in retirement.
The termination must be in writing - an informal letter is usually sufficient. It should ask the provider to pay off the balance at a certain time.
The amount to be received
Who resigns a Riester pension, gets back the paid contributions. Of these, the state allowances and the tax benefits must be repaid - these are often withheld immediately by the provider of the Riester pension. In addition, there are fees for the resolution. Depending on the provider, these can be between 50 and 150 euros. What then remains is repaid.
The amount of the repaid amount depends on the Riester variant chosen by the customer. In a Banksparvariante this amount is more about the deposits, since the costs are low here. In the classic Riester insurance higher costs are planned - the amount is rather small, because here only the surrender value is payable. Thus, ultimately less money can come out than was originally deposited.
In the case of fund pensions, it depends on the current stock market of the funds used. As a rule, the costs are low here as well. However, the payout process may take a little longer here, since the fund shares must first be sold by the provider.
Alternatives to termination
Not always, it must be the termination. In order not to have to accept the enormous financial loss, there are numerous alternatives. For example, those who can no longer pay the contributions they have made so far from life-changing circumstances can usually reduce them easily. Thus, the contributions to the new life situation can be adjusted.
Another option is to let the Riester pension rest. No further contributions are paid in here, but the credit remains and the grants do not have to be repaid. Likewise, the money continues to earn interest. If you are just dissatisfied with your provider, you can make that change. But usually the change is expensive here too. A comparison can provide information and several consultants should be consulted to find the best alternative.
Instead of a change, it is also often the case here to let the existing pension also rest and conclude another with another provider. The state sponsors up to two Riester contracts. The allowances can be shared between the two.
The basic rule is that the termination of a retirement plan should always be carried out wisely. The older the customer, the harder it is to find a good retirement savings. Therefore, all alternatives should be considered before this step is actually taken.
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