State-subsidised securityRiester pension
The Riester pension is a special case within private pension insurance. For many, it represents an entry into private retirement provision. Anyone who invests four percent of their gross annual salary in a subsidized, private pension scheme receives an additional four percent each year from the state: €175 (married couple, double) plus €185 per child. For children born after 2008, the Riester allowance is even €300 per child. Insured persons under the age of 25 also receive a one-off state special allowance of €200.
The Riester pension is very good choice for parents or for investors with low incomes. Due to the high level of tax incentives, however, it is also attractive for higher-income employees and civil servants.