An existing Riester balance could provide funds for your home. In the purchase overview you should answer three different questions: which amount can actually be paid out, when it will be available and what later tax treatment applies? The figure on the contract statement alone does not explain all three points.
The Zentrale Zulagenstelle für Altersvermögen describes a specific verification and payout process for Wohn-Riester. In addition, a notional Wohnförderkonto is maintained for later taxation. [ZFA-WOHN] That is a different figure from a bank balance accessible for the payment of the purchase price.
Confirm the present source of funds concretely
Have the Riester contract, current balance and the specific housing project ready for individual advice. Clarify whether and to what extent the intended use is permissible. A general possibility of use does not replace confirmation for your purchase and your contract status.
According to the ZfA information, it decides on the requested withdrawal; payment is made by the provider if the decision is positive. The provider may charge withdrawal fees. [ZFA-WOHN] Therefore ask the appropriate contact about the amount, costs and the actual payment route. No guaranteed payment date is predicted here and no original form is preferred.
Do not treat the later account as available money
The ZfA explains the Wohnförderkonto as the basis for downstream taxation. Withdrawals recorded on it or subsidised repayment contributions are, under current law, increased annually by two per cent until the start of the pension phase. [ZFA-WOHN] The Altersvorsorgereformgesetz abolishes this increase from 1 January 2028 and also regulates later taxation anew; for a use before that date the previous rule continues to apply. If you plan the withdrawal only afterwards, have the then applicable version confirmed. This notional progression is not an investment return credited to your bank account. It is therefore not added to today’s personal funds.
How the later tax arises in your case and which taxation option is appropriate must be clarified individually. The article states neither a personal tax rate nor a generally more favourable option. Questions about a later move or different use also require separate examination.
The notional purchase plan
Assume a household wishes to use €20.000 from a contract. As long as permissibility, the amount actually payable and costs remain open, this source remains conditional. The rest of the financing plan includes a variant without the unconfirmed inflow. A commitment to purchase will not be based solely on the mere intention to withdraw.
After a confirmed payout, only the amount actually available will be allocated to the appropriate use. The later tax planning will additionally receive its own line and its professional basis. The same amount will not simultaneously be carried forward as an undiminished continuing pension provision in the contract and as spent purchase capital.
Examine two life phases together
The decision therefore concerns today’s financing needs and later provision. Have both perspectives compared with one another. A lower current loan does not on its own represent the full economic effect of the withdrawal. The comprehensible result sets out available purchase funds, actual withdrawal costs, the changed contract status and the later taxation that still needs professional explanation. Only then will you have a sound basis for the individual decision.