Is Riester Pension Right For You?

Discover the potential benefits of the Riester Pension, also known as the Riester Rente, and whether it's a suitable option for your retirement planning. 🤔

Key Takeaways

  • The Riester Pension is a government-sponsored pension plan in Germany that offers bonuses and tax benefits to employees.
  • The Riester pension is particularly advantageous for employees and married persons whose spouse also contributes.
  • The profitability of the Riester pension depends on factors such as marital status, gross monthly salary, number of children, etc.
  • Choosing the right Riester provider is crucial to maximizing the benefits of retirement savings. PerFinEx can help you with that.


If you’re a German resident looking for a pension plan that offers attractive rewards and substantial tax advantages, the Riester Pension, also known as the Riester Rente, might be the perfect fit for you.

In this comprehensive guide, we will delve into the ins and outs of the Riester Pension, helping you determine whether it aligns with your retirement planning goals and uncovering the best Riester provider to suit your needs. Prepare to make informed decisions about your financial future with the expert advice from PerFinEx, your trusted financial partner.

What is Riester Pension and who should consider one?

The Riester Pension is a government-sponsored pension plan in Germany designed to provide financial security during retirement. Named after the former German Minister of Labor and Social Affairs, Walter Riester, this pension scheme aims to encourage private retirement savings by offering attractive bonuses and tax benefits to eligible individuals.

The Riester Pension is particularly beneficial for two groups of people: employees who contribute to the German social security system and married individuals whose spouse contributes to it. For these individuals, the Riester Pension can be a lucrative investment, offering substantial bonuses and tax deductions. 

The state allowances amount to 175€/year for each adult and 300€/year for each child born after 2008. For each child born before 2008, you receive an additional 185€/year in state allowances. This significantly increases the profitability of the Riester pension.

Calculating Riester Pension Profitability

To assess whether the Riester pension is suitable for you, let’s look at how to calculate its profitability:

  1. Family Status: Determine whether you are single, separated, divorced (Getrennt in German), or married (Zusammen).

  2. Monthly Gross Salary: Enter your monthly gross salary. The higher your income, the more profitable the Riester pension. This is because a higher salary usually also means a higher income tax rate.

  3. Number of Children: Enter the number of children you have. Each child adds a substantial government bonus of 300 Euros per year to your pension (185€/year for children born before 2008).

  4. Child Allowance and Kindergarten Support: Fill in the child allowance (Kinderfreibetrag) and child support (Kindergeld) you receive. These values contribute to your overall government bonuses.

  5. Church Membership: Indicate whether you are a member of the church, as this can have an impact on the Riester Pension calculations.

  6. Your Contribution: Select the amount you would like to pay into your Riester pension. Our suggestion is to enter “Zulagenoptimiert”. This means that you want to save in as much as you need to receive the maximum state allowances.

Choosing the Best Riester Provider

Selecting the right Riester provider is crucial for maximizing the benefits of your pension plan. Different providers offer varying investment strategies, so it’s essential to find one that aligns with your financial goals and risk tolerance.

PerFinEx is here to help you with this crucial decision. With our expertise, we can create an overview of all Riester providers in Germany, helping you identify the best option based on your income, family status, and investment preferences. Book a free meeting with our team to gain personalized insights and make well-informed choices for your future.

If you wanna opt for a Riester pension in Germany, feel free to book a meeting with us to take out the best Riester pension in Germany.


The Riester Pension offers a unique opportunity for German employees and their families to enjoy substantial government bonuses and tax benefits while securing a stable financial future during retirement. By leveraging the expertise of PerFinEx and using our Riester Pension calculator, you can make informed decisions about your retirement planning.

The Riester Pension’s generous government bonuses and tax benefits make it an attractive option for those eligible to participate. Families, in particular, can benefit greatly from this pension plan due to the additional bonuses provided for each child.

With PerFinEx as your financial partner, you can confidently navigate the complexities of the Riester Pension and choose the best provider to suit your unique needs. Our team of experts will analyze your financial situation, investment preferences, and future goals to recommend the optimal Riester provider for you. You can rest assured that your retirement planning is in safe hands with PerFinEx.

Don’t miss the opportunity to secure substantial government bonuses and tax deductions. Invest in your future today with the Riester Pension and PerFinEx’s expert guidance. Book a free meeting with us to start your journey toward a financially secure and fulfilling retirement.

1 thought on “Is Riester Pension Right For You? Exploring Bonuses and Tax Benefits”

  1. Pingback: German Pensions Level 3 – A flexible way to save money!

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