2024-10-01 17:55:10
Finance
Retirement
Economy

New Pension Plan for Citizens: What You Need to Know

Image used under license from Shutterstock.com

Starting in 2026, German citizens will have access to a new, state-subsidized private pension plan, designed to enhance retirement savings. Announced by Finance Minister Christian Lindner, this plan aims to address the shortcomings of the current Riester-Rente by offering more attractive, flexible, and cost-effective options.

Citizens can invest in certified funds and ETFs, with the exclusion of high-risk products like cryptocurrencies. Two guarantee levels, 80% and 100%, will cater to different risk appetites.

The state will provide a subsidy of up to 600 euros per year, incentivizing higher personal contributions. Additionally, young professionals and low-income savers will receive extra bonuses.

The plan also supports investments in self-used real estate and offers tax benefits during the contribution phase. Existing Riester contracts will retain their benefits, with an option to transfer to the new scheme.

The initiative is expected to cost the state around 380 million euros annually initially, rising to over 500 million euros from 2029. Overall, this reform seeks to make private retirement savings more accessible and beneficial for all.

Frankfurter Rundschau
30. September 2024 um 19:30

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Finance
Economy
Finance Minister Christian Lindner (FDP) is planning a new model for private pensions from 2026, in which citizens can choose between a state-subsidized retirement savings account and other options. The costs for the state are estimated at around 380 million euros per year in the first years and are expected to exceed 500 million euros per year from 2029.
Frankfurter Rundschau
1. Oktober 2024 um 16:36

Alternative to the Riester Pension? These are the new plans for private pensions

Finance
Economy
Politics
Finance Minister Lindner is planning a state-subsidized retirement savings account; Guaranteed product with two options; Reference portfolio contract as a simple savings plan; Funding up to 600 euros per year; Savers can invest in funds or ETFs; The social association SoVD expresses criticism, as the employer side is not involved.
Tagesspiegel
1. Oktober 2024 um 09:58

FDP against pension package II: "Heil's draft is not generationally fair"

The criticism of the traffic light pension plans is getting louder in the FDP. NRW boss Höne is pushing for a "system change". In the SPD, it is suspected that the Liberals are looking for strategies to leave the coalition.
n-tv.de
1. Oktober 2024 um 17:46

Hope for the supplementary pension?: This is what Lindner's retirement provision depot looks like - n-tv.de

Economy
Finance
Politics
Hope for the supplementary pension? This is what Lindner's retirement provision depot looks like The Riester pension hardly tempts people to save privately anymore. As a result, most people will have a problem in old age. The Finance Minister wants to change that - and is presenting plans for a new state-subsidized old-age provision. This is how it is supposed to look. Rightly so, many people in this country are worried about their financial situation in old age. The statutory pension is a good..
CW

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