Key events for August 2026. The private pension provision reform was passed and came into force at the end of May 2026. C 1 January 2027 In Germany, the Altersvorsorgedepot is being introduced – a state-subsidised pension savings account that is replacing Riester-Rente. A new Riester contract can only be taken out until 31 December 2026.
The main difference from Riester can be broken down into three points: the state adds up to €540 a year instead of €175, the one hundred per cent capital guarantee ceases to be mandatory and the self-employed gain access to state support for the first time.
Below is how the top-up is calculated, what product options exist, when and how the money is paid out, how this differs from a regular brokerage account, and what to look out for so you don't overpay on costs.
What is in this article
- What is the Altersvorsorgedepot
- How much does the government contribute
- How much you personally will get
- Three product variants
- Who has access
- For the self-employed: Rürup or a new deposit account
- When and how is the money paid
- Taxes: how this differs from a brokerage account
- If you can leave Germany
- What is there to be wary of
- Riester or Altersvorsorgedepot
- What to do before 1 January 2027
- Frequently asked questions
- What we advise clients now
What is the Altersvorsorgedepot
This is a long-term retirement savings account to which the government makes co-contributions. You make contributions, the money is invested in funds or other instruments, and before payouts begin, the profit within the account is tax-free.
In return, the money is locked away until retirement: you cannot withdraw it earlier without losing state support. The exception is purchasing your own home and the energy-efficient modernisation of your house: the funds can be used for these purposes without losing tax reliefs, just as with the Riester scheme.
- Contributions — up to €6,840 a year. State support applies to the first €1,800.
- Minimum to receive the additional payment — €120 a year.
- Start — contracts are available from 1 January 2027, they simply do not exist before then.
How much does the government contribute
The top-up is no longer a fixed amount, as it is with Riester, but depends on how much you contribute yourself. The mechanics are established by the reform – see. clarifications from the Federal Ministry of Finance.
- 50 cents for every euro from the first €360 a year — that's €30 a month. The maximum state subsidy you can receive at this tier is €180.
- 25 cents for every euro the next €1,440 — a maximum of €360.
- Total up to €540 a year with a personal contribution of €1,800, which is €150 a month.
- For every child — euro for euro, up to €300 a year. The full child allowance is received with a contribution of €25 a month per child. The child's year of birth is no longer important: under Riester, children born before 2008 only used to get €185.
- Youth bonus — €200 one-off, if the contract is concluded before the age of 25.
It is possible to pay in more than €1,800 a year — up to €6,840 — but the top-up does not increase as a result. Exactly how the contributions are distributed between the base and child top-ups will become clear from the terms of specific contracts: these will appear closer to 1 January 2027.
How much you personally will get
The top-up is calculated from your own contribution, so the exact same scheme results in very different amounts. Six typical situations — in euros per year.
- Minimum contribution, €10 a month. €120 a year from you — 60 € from the state. This is half of the contribution, but in absolute terms it is not very much.
- €30 a month. €360 a year — 180 € Surcharges. The first tier is chosen entirely, after which they add 25 cents per euro.
- €150 a month. €1,800 a year — 540 €, the maximum basic top-up. This amounts to 30 % of the contribution.
- €150 a month and one child. An extra €25 a month per child — the top-up rises to 840 € per year, that’s already 40 % towards the contribution.
- €150 a month and two children. 1.140 € a year — almost half of what you contribute yourself.
- Contract up to 25 years. In the first year, a one-off bonus of €200 is added to €540 — 740 €.
The conclusion from these figures is simple: the more children there are in the family and the closer your contribution is to €1,800 per year, the more beneficial the scheme is. Contributing more is permitted — up to €6,840 per year — but this does not increase the top-up any further.
Three product variants
The law describes not one product, but three. The difference lies in the warranty and the costs.
- Pensions investment account without guarantee. Money is invested in full, return of contributions is not guaranteed. Expected return is higher, risk is too.
- Standarddepot — a simplified standard option. A cost cap is in place here: no more than 1 % per year in terms of effective costs.
- Product with a guarantee. Return of funds is guaranteed by the start of payouts 100 % or 80 % of the contributed amounts. The higher the guarantee, the more cautious the investments and the lower the expected return.
Please note: the cost limit of 1 % applies specifically to the standard version. There is no legal cap for the other products.
Who has access
The range of recipients of state support is broader than in the Riester scheme.
- Employees, who pay contributions to state pension insurance, as before.
- Sole traders, freelancers and entrepreneurs — for the first time. This refers to income under § 15 and § 18 para. 1 nos 1–3 of the Income Tax Act (EStG) when a tax return has been filed.
If you are self-employed, until 2027 it makes sense to compare the Altersvorsorgedepot with Rürup pensionWith Rürup the benefit comes through tax relief, whereas here it comes through a direct top-up to your account.
For the self-employed: Rürup or a new deposit account
For those who are self-employed, this is the main news of the reform. The Riester scheme without contributions to the statutory pension insurance has been closed, and the Altersvorsorgedepot has been opened. Now you have two government-backed schemes, and they are structured fundamentally differently.
- Rürup works via tax relief. In 2026, up to €30,826 for single filers and up to €61,652 for married couples filing jointly can be claimed as special expenses (Sonderausgaben). From this amount, everything that has already gone towards state pension insurance or a Versorgungswerk is deducted first.
- The Altersvorsorgedepot operates through a direct top-up. up to €540 a year plus €300 for each child. Tax relief is not the main mechanism here.
Hence the rule of thumb. With a high tax burden and large contributions, the Rürup deduction usually yields more in euros. With a moderate income, especially if there are children, direct deposits are more advantageous—and, more importantly, more flexible.
Flexibility is the second point of comparison, and there is a noticeable difference here. The Rürup scheme is more rigid: payments are made only as a life annuity and not before the age of 62; you cannot withdraw the funds as a lump sum; you cannot terminate the scheme and receive a surrender value; and inheritance rights are restricted. The deposit scheme allows for a one-off payment of up to 30 %, offers a payment plan as an alternative to an annuity, and lets you choose whether you want a capital guarantee.
It is possible to combine both programmes. More details on the first one: Rürup pension for the self-employed.
When and how is the money paid
- The start of payouts is no earlier than 65 years of age, the start can be postponed to about 70.
- One-off — up to 30 % accumulated at the beginning of the payout phase. You cannot withdraw everything at once.
- The rest is optional: a repayment plan calculated for at least up to the age of 85, or a lifetime annuity.
The difference between these two options is substantial. The payout plan gives more money per month, but eventually ends. The lifetime annuity pays less, but never ends. Under Riester, the lifetime annuity used to be compulsory — now it is strictly a choice.
For very small amounts, the option of a lump-sum payment (Kleinbetragsrente) remains. Withdrawal of the money for any other purpose is considered harmful use — schädliche Verwendung — and strips the account of its privileged tax status.
Taxes: how this differs from a brokerage account
This is a key point that is usually omitted during a sale.
- pensions investment account. Contributions are tax-free, and profits inside the account are too. But pensions are fully subject to income tax, regarding your personal tax rate — this is known as deferred taxation.
- Standard brokerage account. A 25 % Abgeltungsteuer is deducted from the profit, plus the solidarity surcharge; however, pension payments are no longer subject to any tax and the money is available at any time.
What is more financially advantageous depends on two things: what your tax rate will be in retirement compared to today, and how much government money you manage to receive. There is no one-size-fits-all answer — it has to be calculated using specific figures.
If you can leave Germany
This isn't mentioned when setting it up, yet for many it's a decisive point. The reform hasn't changed the allowance mechanism: they continue to be credited and, if necessary, reclaimed by the central ZfA office, while the rules upon departure remain the same as those that apply to Riester today.
- Moving within the EU and EEA — including Norway, Iceland and Liechtenstein — does not affect the allowances already received. Nothing needs to be returned: this is a consequence of the freedom of movement within the EU and a 2009 European Court ruling. However, new allowances will no longer be paid.
- Moving outside the EU and EEA terminates unlimited tax liability in Germany, and this is considered a harmful use: the allowances and tax reliefs received will have to be repaid.
Outside the EEA are post-Brexit Britain, the USA, Israel, Turkey, and the CIS countries — meaning the majority of destinations people actually move to from Germany.
There are two mitigating circumstances. The repayment can be deferred by submitting an application to the ZfA — usually until the payout phase begins. Furthermore, a secondment by a German employer with the continuation of German pension insurance is not considered a relocation.
There are no separate departmental explanations yet specifically regarding the new deposit: the law has been passed, and secondary legislation is only just taking shape. If leaving Germany is a realistic scenario for you, this is a question worth putting to the provider in writing before signing. How this works in Riester is covered separately: Riester when moving from Germany.
What is there to be wary of
German consumer organisations The new programme received a reserved assessment. There are three main complaints, and all of them are valid.
- Even 1 % in annual costs is a lot. Over a 40-year period, with a return of around 6 % per annum, costs eat into a significant portion of your returns. In percentage terms, this may seem like a small amount, but it works against you in exactly the same way that compound interest works in your favour.
- Premium tariffs will be more expensive. The ceiling in 1 % applies only to the standard product. For the other variants, the costs may amount to 1.5–2.5 % per year and above - for «special support» or «special fund selection».
- By the end of 2026, there will be a wave of sales. The argument «hurry up, the programme is closing» in itself says nothing about whether the product is right for you personally.
The practical conclusion is simple: do not sign in a rush, and compare not the percentages in the advert, but the effective costs for the entire term of the contract in euros.
Riester or Altersvorsorgedepot
Comparison on material points.
- Base supplement: Riester — €175 a year fixed; deposit — up to €540 a year, but in proportion to your contribution.
- Contribution for maximum: Riester — 4 % income, not exceeding €2,100 per year; contribution — €1,800 per year.
- Children: Riester — €300 per child born from 2008 and €185 for those born earlier; deposit — €300 for any child.
- Capital guarantee: Riester — mandatory contribution: 100 %; deposit: a choice of 100 %, 80 % or no guarantee.
- The self-employed: Riester — no; deposit — yes.
- Costs: Riester — no limits; deposit — no more than 1 % per year for the standard option.
- Payments: Riester is a whole-life annuity; a deposit is a plan for at least 85 years or a whole-life annuity.
When an existing Riester contract is more advantageous than a new deposit. There is a non-obvious case. With a low income, the minimum personal contribution for a Riester contract is only €60 a year, and that is enough to receive the full basic allowance and child allowances. In the new system, the full basic top-up requires €1,800 a year. For every euro invested, the current Riester contract can yield noticeably more — especially for a family with children and a modest income. Cancelling such a contract in favour of a new one is definitely not worth it.
What to do before 1 January 2027
- There is a Riester pension contract — do not cancel it. Upon termination, the bonuses and tax reliefs received must be returned to the state. It will be possible to transfer the accumulated funds into a new deposit later without having to return the bonuses.
- No contract yet, and you are being offered a Riester before it's too late« - calculate both options. Detailed breakdown: Who Riester is not suitable for and what will happen from 2027.
- Self-employed — compare Rürup and the future deposit: both programmes are now available to you.
- Save on your own — look what it gives regular ETF plan: without state support, but also without locking up money until the age of 65.
- Don't rush to choose a provider. Until 1 January 2027 there is nothing to compare: there is a law, but no tariffs.
Frequently asked questions
When can the Altersvorsorgedepot be opened?
From 1 January 2027. Prior to this date, products are not available: the law has been passed, but the tariffs do not yet exist.
How much does the government contribute?
Up to €540 a year in basic top-up with a personal contribution of €1,800, plus up to €300 for each child and a one-off €200 for those who opened an account before the age of 25.
Is it available to the self-employed?
Yes, for the first time. Under Riester, this category of person was not entitled to the allowances.
What will happen to my Riester contract?
He continues to operate under the former rules. Later, the savings can be transferred to a new deposit without returning the bonuses already received.
Can you withdraw your money before retirement?
Without losing state support – solely for the purchase of one's own home and energy retrofitting. In other cases, this is considered misuse, and the reliefs have to be repaid.
Is a capital guarantee mandatory?
No. The choice is: a product with a hundred per cent guarantee, an eighty per cent one, or none at all.
How much does this cost?
For the standard version, the effective costs are capped at 1 % per year. For the other products, there is no legal cap, and they may be significantly more expensive.
What will happen to the allowances if I leave Germany?
Within the EU and EEA, nothing needs to be returned. Outside of them, the allowances and tax reliefs received will have to be paid back, and an extension can be requested from the ZfA. More details in in the moving section.
What we advise clients now
I have been working as an insurance broker for over twenty years — meaning on the client's side, rather than the insurance company's. Over this time, around 6,000 people have passed through our hands, and almost every pension reform has looked the same: first a wave of sales «before it's too late», then several years of unpicking what people signed.
What we say to clients in August 2026.
- We are not touching the existing Riester contract. Termination is almost always the most expensive of the options. Continuing, pausing contributions or transferring the savings later are three normal decisions. Terminating is not.
- A new Riester before the end of the year — only if it works out on your figures. Simply saying «the programme closes» is not an argument.
- There is nothing to compare it with yet. The Altersvorsorgedepot tariffs do not exist yet, there is only the law. Anyone selling you the «new deposit» today is selling you anticipation.
- Focus on the costs rather than the return in the presentation. The difference between 1 % and 2 % per year over thirty years amounts to more than the total state subsidy.
- Relate it to your own situation. Income, children, tax rate, plans to stay or leave — the answer depends on that, not on what is written in the advertisement.
From January 2027 we will calculate both options in parallel and show the difference in euros for the entire contract term, rather than as a percentage.
Do you need help with the calculation? Write to us — let's review your situation: whether to keep the existing Riester contract, take out a new one before the end of the year, or wait for the Altersvorsorgedepot.
About the author. Valeriy Melekh, Finber. Insurance broker with licence pursuant to Section 34d (1) GewO and real estate finance broker pursuant to Section 34i GewO, registered with the IHK Rhein-Neckar. Intermediary register numbers: D-HIAG-TDBW7-60 and D-W-153-ABGZ-14. Over 20 years of practice, approximately 6,000 clients, upwards of 400 partners.
Sources.
- Federal Ministry of Finance Questions and answers on the reform of subsidised private pensionssurcharge amounts, minimum contribution, cost ceiling, product options.
- Federal Government Private pension provision reformedstages of the legislative process, start date, fate of existing Riester contracts.
- Citizens Advice evaluation of the new depositcosts, risks of premium tariffs, warning of a sell-off.
- German Pension Insurance current Riester parameters, with which the comparison is made.
- Bundestag, Printed Paper 21/4088 — text of the reform act.
Relevance. The reform came into force at the end of May 2026, and products are appearing from 1 January 2027. The data was verified in August 2026. The page is being updated as specific tariffs and terms from providers become available.
This material is for informational purposes only and does not constitute individual advice.
