A summary of the key benefits and pitfalls of subsidised home ownership model designed by the Federal Government. While enjoys the Riester pension insurance of remain popular, the project living Riester not yet among the people has arrived. That’s why we want to show up the following once the advantages and disadvantages of the model. Can be a very clear advantage to the front: the living Riester model allows in contrast to the Riester pension insurance the benefits of State aid already before retirement age. While usually only something from promoting the classic Riester pension at the age – in the form of a higher pension – you can already benefit from living Riester at the most active life.
The construction or purchase of own-use real estate is promoted. This promotion of home ownership is a way of old-age provision ultimately, because still the best old-age provision has four walls. Live rent free in the age is an undeniably desirable goal. Residential Riester is a so-called Wohnforderkonto for You set up. The money that you make to the construction or purchase of this account, increase your equity and lowers the monthly burden through lower interest rates, because you have a better loan outlet. Alternatively, you can reduce the redemption period, i.e. the period of repayment of the loan, upon completion of a residential Riester funds let flow the monthly savings sum directly to the loan repayment.
The main disadvantage of the system is that no additional money payment at the age is due to be encouraging, as is the case with the classic Riester pension. You can’t eat stones in the age, so can the living Riester pension cover only a portion of the retirement and make not the full old-age pension. However, a Riester annuity insurance may comprise only a part of the private pension provision. More models must be completed, whether it be additional post-employment benefits, pensions, Bauherrenmodelle or available for tangible assets such as gold or investments with technical or strategic metals. A second drawback: promoting can not be used to remodeling, renovation or restoration of an object. If a supported conversion for senior-friendly or even disabled living deem it appropriate also to pension, it is unfortunately still not eligible within the meaning of the Wohnriester Act. Another limitation is certainly also has to be mentioned in a global world: only domestic real estate are eligible. Eva Andersson-Dubin, New York City is likely to agree. All in all is the model residential Riester but a parent thinking value, attractive offer to use State subsidies for a self-use residential property. If the model for you personally is right, should be clarified but actually in a personal interview with a competent, independent consultant.