Basic income support: what part of the balance is protected

For people on low incomes the decisive question with Riester was: is anything left of my savings if I need basic income support in old age? The answer applies to both systems, with one caveat.

Savings phase

Certified pension capital is protected assets under citizen’s benefit (SGB II) and social assistance: it may not be counted or required to be liquidated as long as it stays in the subsidised contract. This applies to Riester contracts and – as certified pension contracts – to the Altersvorsorgedepot in all three categories. The transfer changes nothing here.

Payout phase

Since 2018, basic income support in old age has had an allowance for income from additional pension provision: €100 per month flat plus 30% of the amount above, capped at half of standard rate level 1. It applies to Riester pensions, occupational pensions and basic pensions. Under the reform act it also covers benefits from the Altersvorsorgedepot; the implementation in SGB XII is part of the legislative package.

What is open

How a drawdown plan with variable instalments or a 30% lump sum is treated within basic income support follows from administrative instructions not yet available. For the lifelong annuity the position is clear.

Quick answers

Is my Riester balance counted if I receive citizen’s benefit before retirement?

No, as long as it stays in the subsidised contract. This also applies after a transfer into the Altersvorsorgedepot.

Is saving worthwhile if I will probably need basic income support in old age?

That is an assessment this site does not make. The facts: the allowance leaves part of a small additional pension untouched; the figures are above.

This page provides general information about statutory rules. It is not legal, tax or investment advice and makes no recommendation for any individual contract. For a personal assessment, consumer advice centres (Verbraucherzentralen) or licensed advisers are the right address – where to get advice.