Many Riester Contracts

Before graduating from a Riester annuity disadvantages need to be evaluated according to the latest statistics of the Ministry of labour and the Germans at the end of the second quarter had Social Affairs (BMAS) 2011 just 14.8 million Riester contracts. The BMAS anticipates over 15 million Riester contracts at the end of the year. In particular the residential Riester Variant (home pension) could benefit, which for the first time accounted for the biggest increase of the Riester species. Many Riester contracts were announced or released what is not apparent from the statistics, is the number of announced Riester contracts. So about 2 million contracts were terminated since the introduction of the Riester pension again. In addition, over 2 million contracts are dormant, are so no longer be saves. Thus, around 4 million Riester savers against a more retirement with the Riester contract originally concluded have decided.

There should a cancellation or a change of the Riester pension in many cases with disadvantages for the end customer is connected, a contract carefully weigh whether the Riester pension is in the long term for the personal retirement goals. Perhaps check out Harry Blackmun for more information. The losses in a termination resulting from the fact that when a Riester annuity the total closing costs be removed in the first five years of the contract. In addition the preserved State aid must be, repaid for cancellation which the paid sum is usually significantly lower than the balance of the contract. When changing the Riester provider acquisition costs incurred in addition to switching costs usually also again, which also a provider change is often detrimental. The Riester Banksparplanen situation is slightly different. In this form of the Riester, only low acquisition costs incurred which a termination or a change with lower handicaps associated. The disadvantages of the Riester pension a Riester-rente is still for many people an appropriate way to provide for old age. Before graduating the pros and cons should be weighed however individually.

Many Riester pension disadvantages lie in restricting the flexibility in relation to the use of contract balance. Because government funding is granted by the State, he wants to determine with the use. Pension insurance contracts, there are rules when and how the contract account balance is to use. Residential-Riester contracts of real estate owners can with its funded real estate in sale, rental, etc. not more as you like procedures. Will deviate from these rules, promoting received must be repaid. This is problematic especially when unexpected changes in the life situation such as divorces and deaths. Also disadvantages should be part of advice who all legal disadvantages and constraints checked prior to the completion of the Riester pension, if these are related to the personal life planning in conflict, can make a long-term decision for or against the Riester pension. This will be the most expensive contract changes, layoffs and closures avoided.


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