The basic allowance for the riester pension in 2019

The basic allowance is one of the main instruments of the Riester pension, with which the state promotes private retirement provision and makes it attractive. Various conditions must be met in order to receive the basic allowance.

What is the Riester pension basic allowance?

The basic allowance is one of the reasons why the Riester pension is fundamentally attractive because every Riester saver automatically receives the basic allowance from the state and is currently 175 euros (previously 154 euros).

However, the money is not transferred to the saver’s checking account, but to a Riester account to which the saver initially has no access. Only when the saver retires will he receive the basic allowance and all further deposits from the Riester account.

The Riester pension will from the State funded in two ways:

  • through allowances
  • through tax benefits

The basic allowance must be applied for and is only allocated to eligible persons. You can find out what these are in the section "Who gets the Riester basic allowance?" Further down on this page.

Further Riester pension allowances

In addition to the basic allowance, there are two other Riester pension allowances:

  • Child allowance – For every child born after 2008, there is an annual child allowance of 300 euros; for children born before 2008, the child allowance is 185 euros.
  • Entry-level bonus – Entry-level employees under the age of 25 receive a one-time bonus of EUR 200.

Please note: The child benefit allowance is automatically given to the parent who also receives the child benefit. Unless otherwise agreed, this is the mother.

Who gets the basic allowance?

The Riester pension basic allowance is available to every insured person who belongs to the group of persons entitled to support. Eligible are:

  • Employees, apprentices, volunteers from the federal government and students with a mini-job subject to compulsory pension insurance
  • Officials, soldiers and judges
  • compulsorily insured self-employed
  • ALG II recipients or sickness benefit
  • disabled, disabled or disabled

Those who are not eligible for funding can also conclude a Riester contract, but do not receive any government funding.

Secure comparison of current Riester tariffs from 2019!

✔ Quality checked ✔ Free of charge ✔ Independent

The standard for the Riester pension is a basic allowance of 175 euros per person + 185 euros for each child (born until 2007) + 300 euros for each child (born from 2008). You get these allowances year after year. As a family with two children (born after 2008) these are allowances of 950 euros each year. The price comparison is non-binding, free of charge and for sure. It is quickly and easily determined how you can get the best out of your Riester product.

How do you get the full basic allowance?

In principle, allowances must be applied for anew each year. However, there is also the option of applying for a permanent allowance, which ensures that the allowances are applied for automatically. An annual application is therefore not necessary.

You can also read information on the application for permanent allowance further down on this page in the section "How can you apply for the basic allowance? ".

In order to receive the full basic allowance, the saver must pay 4 percent of his income subject to social security contributions into the Riester pension each year. The assessment basis is always the income from the previous year! If less is paid in, the saver is not entitled to state support – that is, neither to allowances nor to tax benefits.

Low earners and the unemployed can also receive the basic allowance. (Unemployed only if they are indirectly eligible, e.g. through a spouse who also has a Riester contract). In this case, the savers must, however, at least the s. G. Pay the base amount, which is currently 60 euros per year.

When do married couples receive the double basic allowance??

If both spouses are eligible and receive a Riester contract, they receive the double basic allowance. The child allowance, on the other hand, is only granted once a year for each couple. If only one spouse is eligible, the other can still receive allowances. For this, the second spouse must also conclude a Riester contract and only pay the base amount of 60 euros per year (5 euros per month).

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