Retirement
The structure of German retirement provision in three layers: basic provision, subsidised supplementary provision and private provision, each with its own tax rules.
Introduced in 2005, the three-layer model organises German retirement provision into three layers. The first layer is basic provision: the statutory pension insurance and the Rürup pension.
The second layer covers subsidised supplementary provision, chiefly the Riester pension and occupational pensions. The third layer is free private provision, such as a securities portfolio or a private pension policy.
Each layer has its own rules on subsidies, availability and taxation. The model helps you structure your own provision and spot gaps between the layers.
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