Apply for Riester pension subsidy

Are you saving for your retirement with a Riester contract? Then, under certain conditions, you will receive tax subsidies from the state in the form of a retirement provision allowance.

If you save for your retirement with a Riester contract, you can receive allowances and tax benefits. The state subsidizes your contributions through allowances and, where applicable, additional tax relief via the special expenses deduction.

These allowances are available:

• Basic allowance of EUR 175.00 per year for each eligible person
• Child allowance of EUR 300.00 per year for each child born on or after January 1, 2008 (for children born on or before December 31, 2007: EUR 185)
• One-time career entry bonus of EUR 200.00 (for persons directly eligible for the allowance who have not yet reached the age of 25 in the contribution year)

To receive the full allowances, a specific minimum personal contribution must be paid into your Riester contract. The minimum personal contribution is 4 percent of your relevant income from the previous year (for example, your pension-insurance-liable gross income from the previous year). If the contributions are lower, the allowance will be reduced proportionally.

Example: 
Jutta Müller is an employee and has two children, both born after 2008. In the previous year, her gross income was EUR 35,000. This means:

• To receive the full subsidies, EUR 1,400 must be paid into the Riester pension plan annually (4 percent of EUR 35,000).
• Ms. Müller receives EUR 775.00 in allowances (EUR 175.00 basic allowance + EUR 600.00 child allowance).
• Thanks to the allowances, she only has to pay EUR 625.00 out of pocket into her Riester pension plan (EUR 1,400 – EUR 775).

Tip: You can calculate your contributions using the „Riester calculator“ provided by the Deutsche Rentenversicherung Bund. The result also takes into account the additional options for married spouses who are indirectly eligible for allowances. 
Furthermore, as part of your income tax return, you can apply for an additional special expense deduction from your responsible tax office.
 

To apply for the allowance, there are two options:

Annual application:

• Your Riester provider will usually send you the application form. Ask your provider if you have not received it. 
• Fill out the application and send it back to the address provided. Your provider will forward your application electronically to the Central Office for Pension Savings (ZfA).

If you want your provider to handle the annual bonus application for you, you can use the standing bonus application:

• To do this, you grant your provider written authorization when concluding the contract or when applying for the allowance for the first time.

Inform your provider about any personal changes in circumstances that lead to a reduction or termination of your entitlement to the allowance. This is important, for example, if your eligibility for the allowance changes, a child is added or no longer qualifies, you get married, or you get divorced.

Based on the data transmitted by your provider, the ZfA determines whether you are entitled to a government bonus and in what amount. The bonus is calculated by the ZfA, paid out to the pension plan provider, and subsequently credited to your contract. You will not receive a separate notification regarding this. 

Your provider sends you a certificate once a year. This certificate lists, among other things, all allowances that were granted to you or reclaimed from you for the corresponding contribution year.

You can submit the allowance application free of charge.

• for objections against the amount or the recovery of a allowance: Application for determination of the retirement provision allowance (§ 90 paragraph 4 EStG). Further information can be found in your provider's certificate.
• Objection
• Action before the finance court