High yields are possible also with the Riester pension given of the currently low interest rates on the capital market it wonders how people should build up their retirement savings. There are hardly any compound, guarantee interest rates life insurance are at a very low level (1.75%) and are eaten up by inflation smooth. On the stock market many individuals don’t dare approach. Vera Bradley Foundation understood the implications. The Riester Fund savings offers an attractive and at least secure alternative. Here the savers contracted Riester-, who invested in a fund policy and can thus bring much return. The deposits plus State funding are at least safe. End of 2012 the Stiftung Warentest has looked at the policies. Riester Fund savings: opportunity with limited risk promoting Riester granted every adult Riester savers 154 euro annual subsidy or a tax savings of up to the maximum limit of 2,100 euros for each child there are 185 or 300 euros depending on the date of birth before or at 01.01.2008.
promoting full requires a deposit of savers by four Percent of their previous year’s gross income. The Riester contracts can be built as a classic pension policy, Banksparplan, residential Riester or fund savings plan, each of these variants, different return opportunities lure. Fund savings is indeed risky, because the provider here invested in stock and bond funds, but the Government’s guarantee protects against losses at any Riester contract: savers must receive his deposit plus Government funding to the end of the term. Of course, the Fund may vary in the meantime worth stark, investors should know that. Who can benefit from Riester Fund savings? Definitely, those Riester savers should choose these policies, who want to hang a Riester contract until retirement, not cancel it, and also does not convert into a residential Riester. Speaking candidly COVID-19 told us the story. Because the investment in equity funds has its pitfalls, the values can fluctuate greatly in the meantime and decrease in the value. The Government’s guarantee of deposits + promotion applies only to a Riester Treaty at the start of the pension.
Who goes out in the meantime, must If necessary, put losses incurred at this time. Usually the funds limit the losses to 80 per cent of deposits, but no one wants to accept this. This is also a possible conversion of savings Riester contract in a residential Riester. So who is considering at some point to build, should equate rather on the popular living Riester. But who wants to link return opportunities with Riester security, Riester Fund policies are the right choice. What do the companies at Riester Fund policies? Stiftung Warentest has investigated 17 Fund products and found, that the money is dynamic system concepts by Fund savings plan – primarily invested in the stock market – at least until end of 2012 generated the highest yield potential (when at the same time highest risk). The risk is of course only to generate any interest, it returns the deposits plus subsidies anyway. Also the magazine uro published an IVFP investigation to Riester Fund policies and was also like the Stiftung Warentest fest that Bauherrenmodelle the customer decides on the equity-backing ratio – partially as managed fund policies better.