Residential Riester: support for families, couples and singles

A residential Riester building society savings contract is never too late. Getting started with Wohn-Riester as early as possible is worthwhile because of various special grants for young people, but residential Riester can also be worthwhile at the age of 40 with children and family.

Table of contents Table of contents Residential Riester: Support for families, couples and singles

• Residential Riester for couples and families
• Funding and funding rate
• The advantages of residential Riester
• Not yet signed a home savings contract?

Table of contents Table of contents Residential Riester: Support for families, couples and singles

• Residential Riester for couples and families
• Funding and funding rate
• The advantages of residential Riester
• Not yet signed a home savings contract?

Residential Riester for couples and families

Children cost money - which shouldn't prevent parents from making provisions. By signing a residential Riester home savings contract for your own home in your mid-forties.

“Buying a property at over forty is far too late!” You say to yourself… How did you come up with that? The residential Riester grant also makes it easier for middle-aged families to fulfill their dream of owning a home. Interest rates are also cheap, property prices are moderate.

Funding and funding rate

The arrangement is simple: adults receive 175 euros per year, and there is 185 euros for each child for whom they receive child benefit. Unless it was born in 2008, the state will wave 300 euros a year. Young people under 25 even get the starter bonus of over 200 euros. The prerequisite is that you pay 4 percent of the previous year's gross income, minus allowances, onto a Riester-certified home savings contract.

Getting residential Riester funding is not complicated - even if the money is not raining down.

/ A. Samokhvalar

The advantages of residential Riester

But what does family support mean in the long term? The state helps you to speed up the allocation or repayment of your building society contract. The cost of buying a house is reduced by many thousands of euros (as was previously the case with the homeowner allowance). Building society advisors and tax professionals calculate your advantages.

Citizens should privately compensate for gaps in statutory pension insurance with government support. The law provides for special rules for families.

Parents: As a rule, the child allowance goes to the mother's building society account. The prerequisite is that they have their own Riester building society contract. If she does not have her own contract, the allowance can flow into the father's account if the conditions for a tax assessment are met and the couple requests the transfer. Separately, the partner receives the child allowance that receives child benefit. During parental leave there is an entitlement to support for the first three years after the child is born.

Special case: You are entitled to an indirect allowance if your partner meets the requirements for the Riester allowance, you do not live separately from him, you have concluded your own residential Riester building society savings contract in your name and you are not directly entitled to allowances (e.g. non-employed persons) Spouse and certain self-employed). You then do not have to pay your own savings rates, but benefit from the funding.

Residential Riester is a very flexible pension product.

Photo: Denis Junker / Fotolia

Not yet signed a home savings contract?

The ideal financing of a property runs through a saved building society contract. Anyone who pays into a residential Riester building society savings contract secures permanently low interest rates for a later loan as well as government subsidies. But what should you do if you have found your dream home but have not yet signed a residential Riester building society savings contract? Or you already have such a contract in your pocket, but it is not yet ready for allocation? The clever solution for those who are currently determined is a pre-financing loan.

Quick money: This loan bridges the time from the moment you need the capital to the allocation of the building loan contract. The loan amount corresponds to the home savings sum.

Saving with bonuses: For the pre-financing loan, you initially only pay interest. Instead of repaying the loan, you save on the residential Riester building society savings contract, on which the state allowances flow. As soon as it is ready for allocation, the building society loan contract replaces the loan in one sum. Then pay off the home loan and benefit from the Riester allowances even in the repayment phase - and thus become debt-free faster.

Fixed interest: The combination of a residential Riester building society savings contract and a pre-financing loan gives you planning security. Even before you buy, you know how high your monthly output will be each year - until you have paid off your house completely. Because the interest on the loan is fixed, as is that of the building society contract. The interest rate risk does not apply. Rate hikes are no longer an issue for you. Your advisor from LBS or Sparkasse will be happy to inform you.

Even if the job should go to another city - buying a property is worth it. The apartment is rented out, young people shop at the next location.

/ Jack Frog

Residential Riester for singles

Riester support supports the purchase of your own four walls: families often receive generous allowances. The tax benefits can be particularly worthwhile for singles without children.

Markus Maurer is in his mid-30s and single. He deliberately chose this way of life - and is therefore a trend. Not only very young people (as determined by the Federal Statistical Office) value independence. More than 80 percent of those living alone are over 30, long established, and many of them earn well.

Retirement provision: Markus Maurer also has an annual salary of 60, 000 euros. "Time to think about the future and retirement planning, " he said at the beginning of the year. The commercial artist has been flirting with his own property for a long time. Now he liked the idea more and more - especially when he found his dream apartment after a short search. Only the financing worried a little at that moment.

Funding: A third of the purchase price of around 300, 000 euros is in his account. He has to finance the remaining 200, 000 euros. He knew that the best models for this include Riester funding. But would that also pay off for a single?

Building blocks: "It's worth it!" Says Andreas Schaffhauser, a financing professional from LBS. Experts agree: Riestern in connection with building society savings remains attractive, especially in the low-interest phase. Maurer makes the best use of all the advantages if he covers a large part of his money needs with a pre-financing loan: he receives 80, 000 euros from his LBS. He does not have to repay this amount in the first 15 years, only interest accrues. At the same time, he saves a home savings contract. As soon as this is ready for allocation, the pre-financing loan is repaid and the home loan is then repaid. At this point, the monthly charge increases (due to the interest and repayment rate of 6 per mille specified in the tariff). The model nevertheless has enormous advantages: First, the interest rates are fixed until the last day. Second, the Riester allowances flow over the entire term.

Savings: Third, Wohn-Riester offers tax benefits: Financiers and pension savers can deduct Riester deposits as special expenses. If the tax advantage exceeds the amount of the allowances, the tax authorities will reimburse the difference. This is particularly beneficial for high earners and singles. Markus Maurer's Riester advantage can amount to over 21, 000 euros over the years. Although he must tax subsidized contributions at retirement age, the tax rate is then usually lower. The thing is clear: soon he can move in.