Homeownership Pension ("Residential Riester")

The Homeownership Pension ("Wohn-Riester") of the Federal Ministry for Housing, Urban Development and Building promotes owner-occupied residential property as a component of private retirement provision. With a certified Riester contract, up to 75% or 100% of the accumulated funds can be used for the purchase, repayment of loans, and age-appropriate renovation (barrier reduction). Additionally, the annual expenses can be claimed for tax purposes up to a maximum amount of €2,100. The basic allowance amounts to €154 per year, the child allowance to €185 or €300 for children born from 2008 onwards. The actual funding rate depends on the chosen withdrawal model and is determined via the housing promotion account. Concurrent utilization of the same measure under the KfW program "Age-Appropriate Renovation" is excluded.

Eligible for funding are private individuals who have concluded a Riester retirement provision contract and wish to use it for owner-occupied residential property – such as a home or cooperative shares. Application documents include proof of the certified Riester contract, evidence of acquisition or ownership of the residential property or cooperative shares, as well as proof of loan or building savings contracts. The application can be submitted at any time and continuously, enabling flexible planning and implementation of construction or renovation projects. Through the combination of tax deductibility, state allowances, and a broad range of funding options, the Homeownership Pension supports establishing one’s own home as a secure component of retirement provision.