New social tariff for low-paid workers makes it s possible the German Institute for retirement was at the initiative of Deutsche Bank AG, Deutsche Bank Bauspar AG, the DWS investment GmbH and the Deutscher Herold AG founded in 1997 and has a mandate to raise awareness of the company with regard to the problems of the German pension system and to design their own age prevention strategies. To do this, repeatedly carried out studies and initiated public discussions. “At the Forum strategies against poverty in old age” a new special rate of DWS TopRente was presented at the 26.2.2013 in Berlin. Low income no fees is this social tariff a Riester pension contract, which come out without administrative fees and distribution costs, specifically to receive people, the Hartz 4 and net have an income of under 11,000 euros per year, to be offered. For particularly low-paid workers are affected by poverty in old age later. At the same time, they are also those part of the population that is most likely afraid before private precautionary measures. This has several reasons.
To the a private old-age provision one means a financial burden. High deposit with low power the Riester-rente can score here generally as a result that the financial equity for low-paid workers is relatively low. While four percent of the gross annual income for the Riester pension must be spent, to be entitled to basic and possibly child allowance. However, this equity with just those State allowances will be charged. With children this in particular for low wage earners often means that only the minimum amount of 60 euros per year must be made.
The Riester pension but also costs for Riester signed reform needs, that can almost completely eat the yield at a low savings capacity. With the new social tariff of DWS TopRente, this problem does not exist. The slide indicates, however, still the benefits of saving power in question provided by the imputation of the Riester pension on the basic insurance at the age. It is possible that a Riester savers depositing for decades in the Riester contract, but as he is with the claims arising from the statutory pension insurance under the Basic assurance level, he is receiving no benefits from the Riester pension, since they will be charged. Here, the policy must find a solution but about a retirement pension product the problem persists. This might also interest you: age pension improvement Act