Many parents would like to have a solid pension plan so that they can also provide better security for their children - but what options does the state offer? The Riester child allowance is a worthwhile subsidy that supports families with up to 300 euros per child each year. It ensures that parents can make long-term provisions for their own and their children's financial security. At the same time, Riester savers benefit from tax advantages and additional planning security.
In this article, you will find out everything you need to know about the Riester child allowance, its requirements and how you can make the most of it to secure your child's future.
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What is the Riester child allowance?
The Riester child allowance is a state subsidy that specifically supports families with children in building up a solid retirement provision. It supplements the classic Riester basic allowance and is also granted per child who is entitled to child benefit. In this way, the state makes it easier for parents to make provisions for the future via the Riester pension.
Parents can apply for the child allowance for each of their children as long as they are entitled to child benefit. The application is usually submitted via the central office for old-age provision assets and credited directly to the Riester contract.
This subsidy is independent of the amount of gross income and helps to further increase the capital saved in the Riester contract each year. This makes the Riester child allowance an important building block for future-proof retirement provision - both for the parents themselves and for their children.
Amount of child allowance: How much support is available?
The amount of the Riester child allowance depends on your child's year of birth:
- Parents receive an annual allowance of 185 euros per year for children born before 2008.
- For children born on or after January 1, 2008, the state subsidy increases to 300 euros per year - a noticeable difference that can add up to a considerable sum over the years.
These amounts are paid into the Riester contract each year and thus increase the total savings.
The allowance is paid regardless of whether the parents receive the child benefit themselves or the other parent, as long as it is applied for correctly and the minimum contribution (four percent of the previous year's income subject to pension insurance, less allowances) has been paid in.
- A particular advantage is that anyone who has applied for a permanent allowance automatically receives the child allowance every year - without having to reapply.
The amount of the subsidy also depends on the number of children for whom child benefit is granted. If a family has two children who were both born after January 1, 2008, the annual subsidy from the child allowance alone adds up to 600 euros - in addition to the basic allowance of up to 175 euros.
Over the entire term of the Riester contract, this results in a substantial subsidy that significantly increases the accumulation of assets for old age. In this way, parents benefit from the state subsidy in the long term and can simultaneously create a solid basis for their children's financial security.
Who is entitled to the child allowance?
As soon as you receive child benefit, you are also entitled to the Riester supplement. It doesn't matter whether you are married, unmarried or a single parent. Unless you apply otherwise, the following applies: the parent who also receives the child benefit receives the child allowance. If you wish, you can also have the allowance transferred to the other parent's Riester contract - this can be particularly useful if you develop a strategy together or the other contract offers better conditions.
Entitlement to the child allowance is therefore closely linked to the child benefit regulations. If the child benefit entitlement changes, for example after a separation or due to other family changes, the responsibility for the child allowance may also change. To ensure that you do not miss out on the state subsidy, it is worth applying for the transfer of the allowance in good time in such cases.
It is also important that you meet the general eligibility requirements for the Riester pension - i.e. that you are subject to pension insurance or are employed in a comparable position (e.g. as a civil servant, judge or soldier). Only then can you benefit from the child allowance and strengthen your pension provision for your child.
Requirements for receiving the full Rister allowance for children
In order to receive the full amount of the child allowance, you must meet certain conditions to ensure that you get the most out of the state subsidy. These conditions relate primarily to your Riester contract itself:
- Make a minimum own contribution
To receive the full allowance, you must pay at least 4 percent of your pensionable income from the previous year (minus the allowances) into your Riester contract. This ensures that the state rewards your own initiative.
- Consider basic allowance
In addition to the child allowance, you also receive the basic allowance of up to 175 euros per year. Both allowances are combined in your Riester contract and thus increase your savings. Please note that the minimum personal contribution is always based on the total amount (personal contribution plus allowances).
For example, if your gross income is 40,000 euros a year, your minimum personal contribution is 1,600 euros. You can deduct the basic allowance and child allowance from this amount. This reduces the actual personal contribution that you have to pay yourself.
Tip: Check your details regularly, especially if your income or family situation changes. This will ensure that you don't lose out on any state subsidies and that you can make the most of the Riester child allowance for your family.
Application: How to receive the child allowance for your Riester pension
The Riester child allowance is not granted automatically - you have to actively apply for it. There are two options: the permanent allowance application and the annual individual application.
✅ Permanent allowance application: apply once, benefit permanently
The standing allowance application is the most convenient option. You authorize your Riester provider to automatically apply for the allowances - including the child allowance - for you every year. You can issue this authorization directly when you take out the contract or at a later date.
This is how it works:
- Fill in the form: Enter your personal details, social security number and details of your children entitled to child benefit.
- Grant power of attorney: Sign the power of attorney that allows your provider to claim the allowances for you each year.
- Notify us of changes: Inform your provider of any relevant changes, e.g. to your income, marital status or child benefit entitlement.
With the standing allowance application, you won't miss any deadlines and you'll automatically receive the allowances.
🗓️ Annual individual application: Manual application every year
If you have not applied for a permanent allowance, you must apply for the allowance yourself each year. Your provider will usually send you a form for this purpose.
This is how you proceed:
- Fill in the form: Enter your personal details, details of the child benefit you receive and details of your children.
- Attach the supplementary form: Attach the supplementary form for the child allowance, stating the child allowance number and other relevant information.
- Please note the deadlines: The application must be submitted by the end of the second calendar year after the contribution year at the latest. Example: For the contribution year 2025, you have until the end of 2027.
🔄 Transferring the child allowance to the other parent
By default, the parent who receives the child benefit receives the child allowance. If you would like to transfer the allowance to the other parent, this is possible with a joint application. Both parents must agree to this and note this accordingly in the application.
📌 Important notes
- Keep your data up to date: Always keep your data up to date. Changes in income, marital status or child benefit entitlement can affect the allowances.
- Retroactive application: The child allowance can be applied for retroactively for up to two years.
- Contact the provider: If you have any questions or uncertainties, contact your Riester provider. They will support you with the application and inform you about the necessary
If you follow these instructions for the allowance application, the state will pay the Riester subsidy into your Riester account either once for the year or permanently - depending on the form of application you choose.
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Tax benefits through the Riester pension
The Riester pension not only offers you attractive allowances, but also tax advantages that can have a noticeable impact on your income. Here you can find out how you can save taxes with the Riester pension - and why the subsidy is particularly worthwhile for families.
- Deduction of special expenses
People in Germany can claim the Riester contributions paid into a pension insurance policy as special expenses in their tax return - up to a maximum amount of EUR 2,100 per year (including state allowances). This reduces your taxable income and you can lower your tax burden.
- Automatic favorability test
The tax office automatically carries out a so-called favorable tax treatment check. This determines whether the tax savings from the special expense deduction are higher than the allowances already granted. If so, the difference will be credited to you as a tax refund. This way, you can be sure that you always get the best benefit for you - either the allowances or the tax refund.
- Tax-free income during the savings phase
During the entire term of your Riester contract, your earnings - i.e. interest and capital gains - remain tax-free. Your assets can therefore grow unhindered. Only when you enter the retirement phase and have your Riester assets paid out will they be taxed at your personal tax rate applicable at that time. This is particularly worthwhile if you are likely to fall into a lower tax bracket when you retire.
- Flexibility with the payout
From the start of your pension, you can have up to 30 percent of your saved Riester capital paid out in one go. This one-off payment is also initially taxable - but usually at a lower tax rate than during your employment. The rest of the capital is paid out as a monthly pension and is also taxed downstream.
With the Riester tax advantage, the state not only supports you in building up your retirement provision, but also ensures that your commitment to your family's future pays off in tax terms.
- Important tip: Make sure that you enter all Riester contracts and payments correctly in your tax return. Your provider will issue you with an annual certificate for this, which you can simply attach to your tax return. This will ensure you receive the full tax benefits and make the most of the Riester subsidy.
Clever combination of Riester allowance and child investments
If you want to make provisions for your family's financial future as a mother or father, you should keep an eye on both your own retirement provision and targeted provision for your child. The Riester pension and the Invest4Kids concept offer an ideal combination here, combining state subsidies with flexible savings options for your child.
With the Riester pension, you secure your own retirement provision and benefit from state subsidies - including the child allowance as a bonus. At the same time, Invest4Kids offers you a flexible way to build up capital for your child in a targeted and tax-optimized way. In this way, you cover both important areas of family provision: your own pension and the financial security of your child.
💡 Good to know
Invest4Kids helps you make the most of the state Riester child allowance for your child's retirement provision. With our free and individual advice, we also help you to find the right, flexible children's investments for your family - with no hidden costs and full transparency. Arrange your no-obligation consultation now and find out how you can secure your child's future in the best possible way.
Conclusion: make the most of your Riester child allowance
The Riester child allowance is an attractive option for your own Riester contract. With up to 300 euros per year and child, you can boost your retirement provision. This government bonus flows directly into your Riester contract and helps you to increase your pension capital in the long term.
Particularly advantageous: the allowance is independent of your income and supplements your savings every year. If you meet the requirements and submit your application in good time, you can secure the full subsidy - ideal support to secure your family's future.
We'll help you find the right investment for your child!
- An additional $25,703 per child, thanks to our modern ETF strategy
- Find the perfect ETF investment for your child in a 30-minute video conference from the comfort of your own home.
- Sit back and watch your child's assets grow – our experts will take care of the rest.
