Riester is a ’no brainer‘ investment. What can you lose? Nothing. What can you win? Nothing.

‚Riester‘ is a badly designed product. The intention was good, but the execution went wrong. If you like the idea of the state (politicians) and bank managers holding your hand, know that it comes at a cost. There is no free lunch.

• The fees: now, i.e. when you buy (typically 5%)
• The fees: during the saving phase
• The fees: when you retire (typically 1.5% of the capital, annually!)
• The lower tax now, but the tax later?
• The lack of control in the investment strategy (due to the capital paid-in being guaranteed….)
• The dismal performance so far, due to the assets being bought that bring no return
• The lack of control in investment strategy once you retire

Riester is great as there is no risk (capital is guaranteed). But the return will most likely be nil.