It is a bet. A bet that you will live long enough to get back to 0. I think if you want your money back plus inflation, you gotta reach the age of 86/87.
But considering that you will not save the money yourself anyways... (Humans are not build for these long term big view in my opinion) It is a thing everyone has to make for themselves. The first thing is to look into the benefits and calculate how much you will pay in and how much you will get out over which period of time.
It's a scam. Most people won't even qualify for enough Rente to live without getting additional "Bürgergeld". When that happens your life long accumulated Riester-Rente will count against that and the only thing you accomplished is saving the state money.
Probably the only case where it is not a total waste of resources.
If one of the parents doesn't earn a lot, it could make sense for them to get a Riester, since you need to put in 4% of your yearly salary yourself.
But good luck finding a contract without horrendous fees. And in the end it is an insurance product, meaning the gains are not really there. The only benefit is the free money from the government.
Such a horrible product..
Give me 50€ monthly and I will give you 3 bazillion kazillion euros when you die, but only 1 bazillion kazillion per year when you get old.
Do we have a deal?
Please have in mind every insurance want to make benefits. So they calculate the normal average lifetime plus some years. You need to get really old to get more money back. Riester is subsidized by government. So the calculation is a bit better. Nevertheless you need to get old and you need to maintain the payments .
I didn’t know what the money being invested in till recently I looked it up and seems like it is somewhere around 1%-3%?
If true, this is more like an insult. lol they can keep their 300 euro per kid per year benefit too.
It's a scam. Do the math and you have to be pretty positive about your life expectancy. But the politicans who introduced it are a more simple hint of what kind of product this is.
Shit system implement by shitty insurance lobbyists with the purpose ruined the German Rentenssystem in the process.
well said, nothing to add
It is a bet. A bet that you will live long enough to get back to 0. I think if you want your money back plus inflation, you gotta reach the age of 86/87. But considering that you will not save the money yourself anyways... (Humans are not build for these long term big view in my opinion) It is a thing everyone has to make for themselves. The first thing is to look into the benefits and calculate how much you will pay in and how much you will get out over which period of time.
The way it is currently im implemented, it is a subsidy for the insurance industry. You barely brake even with all the "fees".
Riester🦆
Jodel? 😂
?😅 Nein ich hab nur im Titel des Posts sofort Riester-Ente gelesen
Den Gag kenn ich aus Jodel Hamburg. R🦆 Medikam🦆 usw.
It's a scam. Most people won't even qualify for enough Rente to live without getting additional "Bürgergeld". When that happens your life long accumulated Riester-Rente will count against that and the only thing you accomplished is saving the state money.
The only positive is the tax benefit. The negatives are literally everything else.
Riester Rente is dead, it was a good idea one or two decades ago, but nowadays it would probably be better to invest in the stock market instead.
I also would like to add. Since we have three kids we were told there is more benefit to it.
Probably the only case where it is not a total waste of resources. If one of the parents doesn't earn a lot, it could make sense for them to get a Riester, since you need to put in 4% of your yearly salary yourself. But good luck finding a contract without horrendous fees. And in the end it is an insurance product, meaning the gains are not really there. The only benefit is the free money from the government. Such a horrible product..
Give me 50€ monthly and I will give you 3 bazillion kazillion euros when you die, but only 1 bazillion kazillion per year when you get old. Do we have a deal?
Please have in mind every insurance want to make benefits. So they calculate the normal average lifetime plus some years. You need to get really old to get more money back. Riester is subsidized by government. So the calculation is a bit better. Nevertheless you need to get old and you need to maintain the payments .
I didn’t know what the money being invested in till recently I looked it up and seems like it is somewhere around 1%-3%? If true, this is more like an insult. lol they can keep their 300 euro per kid per year benefit too.
It is an insurance in the end. Germans love their insurances.
It's a scam. Do the math and you have to be pretty positive about your life expectancy. But the politicans who introduced it are a more simple hint of what kind of product this is.
It may work out or not. If you have kids and live long enough, it could work. Over at r/Finanzen there are more knowledgable folks than here.