From 2026, the new retirement savings account will replace the Riester pension. FDP MP Anja Schulz explains how it should work and what options existing customers have.
Financial experts have long agreed: the Riester pension model has failed. The traffic light coalition has therefore launched a reform of private pension provision, which is intended to make a completely new type of state-sponsored saving possible: the retirement savings account.
t-online spoke to Anja Schulz, member of the Bundestag and the federal executive committee of the FDP, about what advantages the depot offers compared to previous Riester contracts, where its limits are and whether it makes sense for every existing customer to switch to the new system change.
t-online: Ms. Schulz, why does private pension provision need to be reformed?
Anja Schulz: Private, subsidized retirement provision has not kept up with the times. It depends on its rigid guidelines, is far too complicated and far too bureaucratic. The result is that many people no longer use Riester and many contracts are non-contributory. People still save, but in a savings account or a savings account.
However, where there are no or only comparatively low interest rates.
Exactly. If we look at current OECD studies, we find that almost 90 percent of adults in Germany actually actively put money aside, but only 18 percent of them invest in stocks or funds. This means that many do not take advantage of the opportunities offered by the capital market. On the other hand, we recognize that more people are taking precautions with a depot, especially since the Corona pandemic. They use Neobroker or the bank around the corner to enter the stock market. We want to offer this opportunity to everyone in the future.
The core of the bill is therefore the introduction of a so-called retirement savings account. What advantages would it have compared to the previous Riester pension?
One advantage: more choices. In the retirement portfolio it should be possible to save in stocks, funds, ETFs or even bonds. So there is full flexibility for the individual; everyone can decide in which direction they should go based on their individual security needs. Furthermore, the guarantees no longer apply. At Riester, the 100 percent gross contribution guarantee has meant that the returns are extremely limited. In the future, there should be more opportunity orientation with the retirement savings account.
- Also read: Six tips to help you avoid expensive Riester mistakes
With a retirement savings account, there is no longer any guarantee that you will get all of your contributions back. How do you make this palatable to security-conscious Germans?
Security is extremely important for people when planning for retirement. However, with the retirement savings account you also have great flexibility and transparency. I can access it at any time, so I can see how the products I’ve saved have performed and take profits or redeploy my money. At the start of my retirement age, for example, I could switch to lower-risk investments so that I don’t have such large fluctuations.
What if I don’t want anything to do with stocks?
If you want to be even safer, you can stick with an insurance solution even after the reform. There should be a choice between contracts that, as before, guarantee 100 percent of the contributions paid and those that guarantee 80 percent. In the long term, however, it becomes apparent that higher returns can be achieved with stocks, especially at a very young age. And we see that as an opportunity.
Anja Schulzborn in Uelzen in 1985, has been a member of the Bundestag since 2021 and a member of the Federal Executive Board of the FDP since 2023. The trained banker has been working as an independent financial advisor since she was 25, focusing on company pension schemes, capital investments and retirement provision. She is a member of the Finance Committee and the Labor and Social Affairs Committee.
The state wants to subsidize every euro invested with 20 cents – up to 3,000 euros per year. Is this amount a limit for deposits or can I invest more money, just without further support?
This will also be a deposit limit. The providers of the depots must be able to distinguish between which amounts are funded and which are not.
Does that mean I need another deposit if I want to save more than 3,000 euros a year?
Exactly. And this separation also makes sense. During the retirement phase, the money from the retirement savings account must be considered separately anyway. While payments into a private portfolio can be withdrawn individually at any time as desired, the retirement savings account follows a 20-year payout plan. A clear distinction must therefore be made between a retirement savings account, where initially up to 3,000 euros per year plus allowances are possible – later up to 3,500 euros – and a private portfolio in which additional money can be invested without government support.