Financial providers are promoting Germany’s new retirement savings account, the successor to the Riester scheme, as a way to build retirement savings with government support. Some advisers are also presenting it as a tax-saving option for people earning around €5,900 or more in gross monthly income.
The account allows contributions well above the €1,800 per year required to receive the maximum subsidy. Specialists say that putting in more may make sense for people with higher incomes, but other ways of saving for retirement are also available.
The account can still be part of a retirement plan, while the choice of whether to contribute beyond the threshold for the maximum subsidy depends on how it compares with those alternatives.
Sources: Handelsblatt.