What disadvantages does the retirement provision account have?

The retirement provision account is worthwhile for anyone who wants to build up wealth for old age over the long term. It is particularly interesting for savers with Riester experience or for anyone who wants to take advantage of greater return opportunities for their retirement provision.

A payout before retirement is generally possible, but it may result in you having to repay government subsidies. The retirement provision account is therefore designed for long-term use.

The retirement provision account combines state subsidies with capital market returns. This can result in higher return opportunities over the long term than with conventional subsidised provision products.

Unlike the Riester pension, the retirement provision depot is not geared towards rigid capital guarantees. This can give rise to higher return opportunities, and the overall structure becomes simpler and more cost-efficient.

You receive government allowances for your contributions and additionally benefit from tax advantages. The amount of the subsidy depends, among other things, on your contribution and your personal situation. In addition to the standard subsidy, there is also a child bonus and a bonus for those starting their careers.

The retirement provision depot is a state-subsidised model for private retirement provision. From 01/01/2027, it will allow you to invest in the capital market with government support for the first time and build up wealth for your retirement over the long term.