New law: Better help for your pension
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The Bundes-Rat makes a new law. The law is about private pension savings. A new model starts in January 2027. This replaces the old Riester-Rente. Many people found the old plan too expensive. It was also too hard to understand. The new model is easy and cheap. The state gives you more money now. For every euro you save you get 50 cents. This is for savings up to 360 euros. You get 25 cents more for extra money. The max bonus is 540 euros per year. Families with children also get support. Self-employed people get this support too. Banks must sell a simple product now. You can choose how to save. You can save money safely. Or you can buy Aktien-Fonds. Funds can make more money. But they also have more risk. The law limits the costs for all contracts.
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Definitions
- Riester-Rente
- An old way to save money for old age.
- Bundes-Rat
- A group that makes laws for Germany.
- Aktien-Fonds
- A pot of money invested in big companies.
Locations
- Germany
- The country where this law applies.
