• The Bundesrat is expected to approve today a reform of private pension provision that will replace the current Riester model from 2027.
  • The new model introduces a standard product with three guarantee levels: 100%, 80%, and no guarantee, allowing higher returns through capital market investments.
  • State subsidies become proportional: 50 cents per euro up to €360 per year, then 25 cents up to €1,800, with a maximum subsidy of €540 per year.
  • The eligible group expands to include self-employed individuals, and families receive the full child allowance of €300 with a monthly contribution of just €25.
  • Costs are capped at 1% per year, and acquisition costs are spread over the entire contract term.

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