Altersvorsorgedepot: Germany's new subsidised pension account from 2027

From 1 January 2027, Germany’s reform of state-subsidised private pensions replaces Riester for new contracts. Its centrepiece is the Altersvorsorgedepot, literally a “retirement provision account”: a fund account without a mandatory guarantee, where the state adds a top-up (Zulage) to every euro you pay in. What it is worth to you depends mostly on how much you pay in and whether you have children.

This guide explains the rules, works through the top-ups for typical contributions and compares the account with an ordinary ETF savings plan. As of 25 October 2026. The legal basis is the Altersvorsorgereformgesetz of 26 May 2026, BGBl. 2026 I No. 156. Providers may offer the new products from 2027; no certified contracts exist yet.

1. What the Altersvorsorgedepot is

It is a certified pension contract with no guarantee. A fixed positive list allows mainly UCITS funds and ETFs, certain other funds up to risk class 5, and euro bonds from public issuers. Single shares are not allowed. If you want security, you can choose a guarantee product instead, which promises 80 or 100 percent of contributions plus top-ups when payouts start.

Contributions up to €1,800 a year are subsidised. You may pay up to €6,840 a year into one contract, but nothing above €1,800 earns a top-up. At most two contracts signed after 31 December 2026 count as subsidised. Returns are not taxed while you save, as the Federal Ministry of Finance explains in its FAQ on the reform (in German).

2. Who is eligible

The groups that could use Riester stay eligible: people compulsorily insured in the statutory pension system, such as employees and apprentices, parents during the child-raising period, minijobbers who did not opt out of pension insurance, and civil servants (Beamte) who give consent. New from 2027 are self-employed people with business or professional income who file a tax return for the year, and employees who must belong to a professional pension scheme (Versorgungswerk), for example doctors or lawyers. For these new groups, eligibility ends at 67.

Not directly eligible are, for example, voluntarily insured people without another qualifying status, minijobbers who opted out, and people already drawing a full old-age pension. If only one spouse is eligible, the other can receive top-ups indirectly by paying at least €120 a year themselves; their basic top-up is then capped at €175. If you moved to Germany recently, your employment here usually makes you eligible as soon as you pay statutory pension contributions.

3. How the top-ups work

The top-up now grows with your contribution. On the first €360 a year you get 50 cents per euro; on the next €1,440 you get 25 cents. The basic top-up (Grundzulage) is therefore at most €180 + €360 = €540. For each child you receive Kindergeld for, the state adds €1 per euro paid in, up to €300 per child (Kinderzulage). You reach that maximum with just €300 a year, or €25 a month. One parent receives the child top-up.

Top-ups are paid only if you contribute at least €120 a year yourself. The old Riester minimum of 4 percent of income is gone. If you are under 25 at the start of the contribution year, you get a one-off starter bonus of €200.

The pattern is clear: small contributions get the highest rate. At €30 a month you receive 50 cents on every euro; at €150 a month the average is 30 cents. For parents even a small contribution pays off, because the full child top-up starts at €25 a month. Every euro above €1,800 a year earns nothing extra.

The Altersvorsorgedepot calculator takes your own contribution, children and time horizon and shows the result next to an ordinary ETF savings plan.

4. The tax check on top of the top-up

You can deduct contributions up to €1,800 plus the top-up you are entitled to as special expenses (Sonderausgaben) in your tax return: at most €1,800 + €540 = €2,340 without children. The tax office then runs the Günstigerprüfung, a check of whether the deduction saves more tax than the top-up is worth. Only the excess reaches you as a refund; the top-up itself stays in the contract.

Simplified with the marginal rate: at 42 percent, a €2,340 deduction saves about €983 of tax. Minus the €540 top-up, that leaves about €443 extra refund. At 30 percent it saves about €702, or about €162 extra. Lower earners usually get only the top-up, which is then the largest relative to what they pay.

5. The standard account and its 1 percent cost cap

Every provider of subsidised contracts must offer a standard account (Standarddepot). It can be opened online and holds exactly two funds: a cautious one and a growth one. You choose the split, or a default applies. Towards the end, the riskier share falls by default to at most 50 percent five years before payouts and at most 30 percent two years before.

For the standard account, total effective costs (Effektivkosten) may not exceed 1.0 percent a year. Other Altersvorsorgedepots and guarantee products have no such cap; costs only have to be disclosed. Sales and set-up costs must be spread over the saving years. Switching provider within the first five years may cost at most €150 at the old provider and is free there afterwards. Compare costs carefully: 1 percent is a ceiling, not a bargain. A broad ETF in an ordinary brokerage account often costs far less.

6. Payout and tax in retirement

Payouts start at 65 at the earliest, or earlier if your statutory old-age pension starts sooner, and at 70 at the latest. You choose a lifelong annuity or a drawdown plan running at least to age 85. At the start you can take up to 30 percent as a lump sum. Whatever is left in a drawdown plan at death can be inherited, but the subsidies must then be repaid unless the money goes into a spouse’s contract.

Payouts from subsidised contributions, top-ups and their returns are taxed in full at your personal income tax rate, under § 22 No. 5 EStG (German Income Tax Act). According to the Ministry of Finance, they are free of health and care contributions for people compulsorily insured in statutory health insurance. Your tax rate in retirement depends on your statutory pension and all other income. If you plan to retire abroad, note that moving outside the EU or EEA after payouts start counts as harmful use, which triggers repayment of the subsidies.

7. What happens to existing Riester contracts

Riester contracts signed before 1 January 2027 continue under the old rules: €175 basic top-up, child top-up of €185 or €300, and a minimum contribution of 4 percent of income. You have three options:

1. Keep it running as before, or stop paying in and let it rest.
2. Switch irrevocably to the new top-up calculation without changing the contract itself. You do not need the provider’s consent.
3. Transfer the money into an Altersvorsorgedepot without repaying earlier subsidies. Switching costs may apply.

Careful: signing any new subsidised contract from 2027 moves all your contracts to the new top-up rules. The old rules can be better for low earners with children, because a token €60 a year often earned the full top-up. The new rules help most if you earn well but pay in less than 4 percent, since the old top-up was then cut. Run both versions before switching. A Rürup pension (Basisrente) cannot be moved into the new system.

8. Compared with an ETF plan, a company pension and Rürup

A simplified example: €150 a month for 30 years at 5 percent a year after costs, paid at the start of each year. The Altersvorsorgedepot receives €1,800 plus a €540 top-up a year; the ETF savings plan only the €1,800. Children, the tax check, the Vorabpauschale (Germany’s advance tax on fund returns) and the saver’s allowance are left out.

The top-up outweighs full taxation later, as long as your rate in retirement is not too high. Higher earners also get the refund from the tax check, if they invest it. The ETF plan, on the other hand, is available at any time: for a home, a sabbatical, a move abroad or retiring before 65. Money in the Altersvorsorgedepot is locked until payouts start.

A company pension (betriebliche Altersvorsorge, bAV) saves tax and social contributions on converted salary, and the employer usually has to add at least 15 percent. In return, payouts are generally subject to health and care contributions, and converted salary earns fewer statutory pension points. The Rürup pension works through a tax deduction and suits high tax rates; it pays out only as a lifelong annuity. The Zenarios tax plan compares these routes against your own budget and income.

9. Who benefits most

• Parents receiving Kindergeld: €25 a month already brings €300 per child. No other product subsidises small amounts this strongly.
• Small and medium savers: up to €30 a month earns 50 cents per euro, and a low income in retirement also means low tax later.
• Higher earners: the tax check adds a refund, but only on €1,800 a year. Beyond that, an ordinary account is more flexible.
• Anyone who needs the money before 65, or who may leave Germany: keep a freely available ETF plan as well.

In Zenarios you can plan a locked pension account with its access age alongside freely available savings, and check whether your money lasts until your pension starts. The app works in English and German and needs no account. Its rules are simplified and do not replace tax or investment advice. Actual contracts and costs will only be known once providers publish certified products from 2027.

Work it out with your numbers

• ETF savings plan calculatorWhat's left after fees and tax?
• Altersvorsorgedepot calculatorWhat do the new state top-ups add up to?

Common questions

How much does the state add to an Altersvorsorgedepot?

From 2027, the basic top-up is 50 cents per euro on the first €360 a year and 25 cents per euro on the next €1,440, so at most €540. Each child you receive Kindergeld for adds €1 per euro paid in, up to €300 per child. You must pay at least €120 a year yourself.

Should I cancel my Riester contract?

Not necessarily. Contracts signed before 2027 keep the old rules. You can switch irrevocably to the new top-up rules, or move the money into an Altersvorsorgedepot without repaying subsidies, though switching costs may apply. Signing any new contract from 2027 moves all your contracts to the new rules.

Is an Altersvorsorgedepot better than an ETF savings plan?

It depends on your contribution, children and tax rate in retirement. The top-up raises the amount invested, but payouts are taxed in full at your personal rate and the money is locked until 65 at the earliest. An ordinary ETF plan stays available at any time.

When can I open an Altersvorsorgedepot?

The law allows providers to offer the new products from 1 January 2027. As of October 2026, no certified contracts exist yet, so actual costs and providers are not known.

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Written by the maker of Zenarios, a software engineer. These guides explain planning concepts and the product; they are not a personalized financial recommendation. Illustrative calculations are not results from your plan.