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Riester Pension Calculator

Calculate your Riester allowances, minimum contribution, and tax benefit. Find out whether the German Riester pension is worth it for you.

EUR
EUR

Total Allowance

€475.00/year

Basic Allowance

€175.00/year

Child Allowance

€300.00/year

Min. Own Contribution

€1,205.00/year

Tax Benefit

€586.00/year

Basic Allowance
€175.00
Child Allowance
€300.00
Own Contribution (year)
€1,200.00
Total Savings Rate
€1,675.00/year

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What Is the Riester Pension?

The Riester pension is a government-subsidized private retirement savings plan unique to Germany. Named after former Labor Minister Walter Riester, it was introduced in 2002 to compensate for reductions in the public pension level. The government supports Riester savers through annual allowances and tax deductions. All values are in EUR.

How This Calculator Works

Enter your gross annual salary, your desired monthly own contribution, and the number of your children. The calculator determines your basic and child allowances, the minimum own contribution for full subsidies, and your estimated tax benefit. This gives you a clear picture of how much the government contributes to your retirement savings.

Allowances and Tax Benefits

The basic allowance is EUR 175 per year. For children born from 2008, there is an additional EUR 300 child allowance per year; for older children it is EUR 185. You can also deduct up to EUR 2,100 per year (own contribution plus allowances) as special expenses on your tax return. The tax office automatically checks whether the allowance or the tax deduction is more favorable for you.

Who Benefits from Riester?

Riester is most attractive for families with children, as the child allowances significantly boost returns. Low earners also benefit because the allowances represent a large share of total contributions. High earners benefit from the substantial tax deduction. Riester is less suitable for self-employed individuals (not eligible) and for those who prefer maximum flexibility in their investment choices.

Frequently Asked Questions

The Riester pension is a government-subsidized private retirement savings plan in Germany, introduced in 2002. The government provides annual bonuses (basic and child allowances) and tax benefits. In return, the pension payouts are fully taxed in retirement. Riester is especially attractive for families with children and higher earners. All amounts are in EUR.
The basic allowance (Grundzulage) is EUR 175 per year. To receive the full allowance, you must contribute at least 4 percent of your gross annual salary minus the allowances (minimum own contribution). The absolute minimum contribution is EUR 60 per year.
For children born from 2008 onward, the child allowance is EUR 300 per year. For older children, it is EUR 185 per year. The child allowance is credited to your Riester contract as long as you receive child benefit (Kindergeld).
Riester is particularly worthwhile for families with children (high child allowances), low earners (allowances make up a large share of total contributions), and high earners (significant tax benefit). Single high earners without children often benefit more from a Ruerup pension or a flexible index fund savings plan.

All calculations are for general informational purposes only. Not financial, tax, or legal advice. No guarantee of accuracy. Use at your own risk. Full disclaimer