An association has presented a new concept for old-age provision for pensioners: the "citizen's pension".
How retirees could benefit financially in the future.
Hamburg – Ever since the Riester pension was introduced in 2002, there has been criticism of the state-sponsored private supplementary old-age provision.
The costs are too high and they have not done anything to combat poverty in old age, it is said again and again.
For this reason, the General Association of German Insurers (GDV) has proposed the introduction of a so-called "citizen's pension".
What the proposed reform is all about, who will benefit from it and how much money pensioners can expect in the course of it.
Company: | General Association of the German Insurance Industry (GDV) |
Presidents: | Norbert Rollinger, Wolfgang Weiler |
Founding: | 1948 |
Subsidiary: | VdS damage prevention |
Citizen's pension in Germany as a new concept for pensioners: what it's all about
The concept of the citizen's pension is a new, state-subsidized private old-age provision for pensioners, i.e. a more or less limited version of the Riester pension.
In contrast to the Riester pension, the citizens' pension should not only be aimed at employees, but also encourage the unemployed, civil servants and the self-employed to make provision for old age.
The concept is "a product for everyone - without exception," says the GDV website.
According to the
Süddeutsche Zeitung
, the association wants to use the offer to appeal in particular to low and middle earners who pay little tax.
"Compared to the Riester pension, the citizen's pension is simpler, more understandable, more sustainable and generates higher returns," advertises the GDV President, Dr.
Norbert Rollinger, the new concept.
For every euro that is paid into the citizen's pension, the state adds 50 cents in funding.
For example, if a customer pays EUR 1,000 per year into the contract, there is a subsidy of EUR 500, as reported
by 24hamburg.de
.
+
The concept of the new "citizen's pension" could include a subsidy of up to 146 euros per month for pensioners.
(24hamburg.de assembly)
© Patrick Pleul/dpa/Steinach/Imago
The maximum contribution to the citizen's pension is around 290 euros - pensioners can receive a subsidy of up to 146 euros
"In this way, the allowance would increase in proportion to the own contribution - up to a subsidy limit that could be four percent of the contribution assessment limit of the statutory pension insurance," writes the GDV.
In 2023, this limit is exactly 7,300 euros per month in the old federal states and 7,100 euros per month in the new federal states.
The maximum eligible own contribution would therefore be 3,504 euros per year, plus the allowances.
The maximum monthly contribution to the citizen's pension would therefore be 292 euros, and the state would then add the 50 percent subsidy of 146 euros to pensioners.
Citizen's pension from the GDV in Germany: successor to the Riester pension?
First of all only a concept for retirees
While the payments in the concept are supposed to be tax-free, the benefits are taxed when they are paid out.
According to the SZ
, the option of a partial
payment could allow flexibility at the beginning of retirement, but in general the pension saved should be able to be paid out for life.
According to the GDV, poverty in old age among pensioners can be prevented in this way.
However, it is important to mention that the citizen's pension is currently not a "complete product proposal", but "rather [a] concept of how the state-subsidised old-age provision should be designed", according to the association's website.
The framework for this is still determined by politics.
Also good to know as a pensioner: How high is the pension if you have never worked?
List of rubrics: © Patrick Pleul/dpa/Steinach/Imago