Private Retirement Provision

Bundestag decides age pension improvement Act the Riester pension should be transparent, low-cost and return stronger. This is at least the plan of the Federal Government. Whether this succeeds is uncertain. It is a first approach for more consumer confidence. Pension has suffered very much in their viewing the Riester. Headlines were always unprofitable read like Riester-rente”. That’s so not true was the least clear.

As everywhere, there are black sheep, so product providers, which are burdening their customers with high costs and achieve very difficult attractive yields the Riester market. But it is now better. The age pension improvement Act will enter into force with effect from 1 July 2013. Management and acquisition costs should be limited agreements of the provider in the future in the Riester or reduced. The Riester pension should be also more transparent. In other words, it should insert, the product information sheet”, each product be added faster where the customer the actual cost of the Treaty can recognize. Goal is to make comparable also the various Riester provider in its cost structure.

A change of the Riester provider should be connected in the future at a cost of no more than 150. Also the Rurup-rente is repaired. The eligibility limits will be raised here. In plain English: instead of 20,000 euro per year future maximum 24,000 euros to include tax (2013) to 76 percent. In addition to these improvements, there are also two new features in the proposed law. So, the labour pension, so the protection against the loss of manpower, should be strengthened. This is achieved by a dismounted disability protection in the context of Riester contracts (savers can now insert 20% of their contribution instead of 15% in the disability protection) as well as the subsidy of the private disability insurance. These should be given tax incentives like the Rurup pension similar to. It is questionable whether this all so used to. So is it to assume that the SPD, Greens and the left here nor will bring in their oppositional attitude.