The private pension plans – Which is better: Riester pension or endowment policy?
|
In the period before the introduction of the Riester pension was the cash value life insurance Germans who love comes to retirement. This type of savings that had long been exempt from tax completely, seemed to be a good way to save for retirement and pension time. This has now changed, there are now some new rules relating to life insurance, with which one can accumulate capital.
Thus, the full tax exemption is now a thing of the past. First came from the regime, which yields Endowment policies are only exempt if the insurance is taken at least twelve years. Then came a further restriction, which referred to the age of the capital beneficiaries. The interest from an endowment policy are only exempt if the life insurance completed before the 60th Age is paid. So that the legislature intended to lead away from the endowment insurance through to Riester pension. There are now in terms of tax exemption this year, a further reduction in capital life insurance: The insurance amount, called the event of death, must also have at least 50 percent of the payment amount (excluding interest and dividends) amount.
Riester pension is and remains undefeated number one in the private pension
Since life insurance policies are often very expensive in terms of processing costs by the insurance company and do not bring as much interest as it would bring, for example, the system as a pure savings assets in a savings account or time deposit, this is not the best way to a reserve for establish the age. Much more will be here the state-subsidized Riester pension. She is pledging sure the employment agency must not, in the case of the Hartz IV-reference count, and it brings good interest rates. If you have to take as savers the choice between capital life insurance and Riester pension, again Riester contract certainly always the best and more profitable services can be the investment of funds.
Meanwhile, the choice is between large number of potential investment products, all of which are certified as Riester pension. Thus, everyone has Private Pensions Build it and then reap even more money from the State-sponsored Save. So the answer to the question is: capital forming life insurance or pension Riester clearly – the Riester pension is the number one private pension plans and provides all the benefits that are needed for this. Besser’s the Limit!
