BERLIN (dpa-AFX) - Starting in January, new options for private, state-subsidized retirement savings will be available. In Berlin, the Bundestag approved a successor to the increasingly unpopular Riester pension. The CDU/CSU and SPD stated that the new products are more cost-effective, flexible, and, above all, offer higher returns. The federal government aims to encourage more individuals to set aside private funds for retirement.
In addition to a retirement plan where 100 percent of the contributions are guaranteed for payout, there will be a variant with an 80 percent guarantee and a retirement savings account without guarantees, allowing for higher returns on the capital markets. A standard investment account offered by a public entity is also planned.
In a departure from previous rules, all self-employed individuals will now be included. For annual savings of up to 360 euros, the state will contribute 50 cents for every euro invested. For savings between 360 and 1,800 euros, each privately invested euro will be topped up by 25 cents from the state. This allows for a maximum basic subsidy of 540 euros per year. Furthermore, families will receive a child supplement: with a monthly contribution of at least 25 euros, savers can receive the full child supplement of 300 euros per child per year./tam/DP/zb
