Private funded old-age provision must continue to be strengthened in the future. The Riester pension has contributed significantly to its spread and thus improved the pension situation of more than 16 million citizens. With no other old-age provision scheme are the contributions of low-income insured persons or of parents more strongly promoted. Thanks to the high degree of social targeting and the large scope, additional, funded old-age provision is now affordable for everyone: the minimum monthly contribution is only 5 euros, the maximum subsidy is more than ten times the personal contribution.
Nevertheless, there is a need for reform of the Riester pension: In particular, important improvements for simplification and better efficiency should be implemented.
Increase of the basic allowance to € 200 and regular adjustment of the allowance in future as well as increase and dynamisation of the tax deduction option
- An increase is necessary because, due to the development of incomes in the meantime, employees today have to spend a significantly larger part of their earnings for the same allowance than at the time when Riester was introduced.
- In addition, contributions of up to 4% of the income threshold for pension insurance should be tax-deductible (previously only possible up to €2,100), as this is the minimum amount that higher earners have to save in order to receive the full allowance.
Extension of the group of persons eligible for support to all gainfully employed persons
- In future, all employed persons (including the self-employed) should be eligible for support. This is justified by the need for equal treatment and the need for precautionary measures.
Simplification of the allowance procedure
- Automatic generation of a forecast for calculating the minimum capital contribution would make it easier for Riester savers to claim the full subsidy.
- Do not pay out allowances until the Riester Allowance Office (ZfA) has carried out a final check. => Reclaims of allowances would thus be excluded.
Adapt investment opportunities to capital market conditions
- In view of the currently only limited return opportunities of a provision that provides for a gross premium guarantee, it should be possible to deviate from this guarantee in future on a conditional basis.
Development of a uniform and cost-effective standard pension product
- The product should be online-based, standardised and simple in design to minimise administration and costs.
- The advantage is less complexity and the associated reduction of inhibitions on the part of savers.