Key points — verified in August 2026. A new Riester-Rente contract can only be taken out until 31 December 2026. From 1 January 2027, the scheme is being closed to new contracts—it will be replaced by the Altersvorsorgedepot (pension investment account), which offers three times the government top-up. Existing contracts will remain in force; nobody is terminating them or transferring them compulsorily.
Hence a simple corollary. If you are offered a Riester pension before the end of the year, your decision should be based not on the fact that “there is little time left”, but on whether the scheme suits you personally. Below is who it is suitable for, who it is not, and what will be available from 2027.
What exactly is closing and when
The private pension reform has gone through all stages: the government approved it on 17 December 2025, the Bundestag passed it on 27 March 2026, and the Bundesrat approved it on 8 May 2026.
- By 31 December 2026 it is still possible to take out a new Riester contract.
- From 1 January 2027 — that’s no longer possible. New products backed by the government are taking its place.
- Contracts already concluded continue to operate under the previous rules until you take out a new state-subsidised contract (from 2027, including an Altersvorsorgedepot): from then on, the new rules apply to all your contracts and to a spouse who receives allowances through you. The contract itself will not be converted automatically.
What will happen to the already concluded contract
There’s no pressure. You have three options, and you don’t have to decide straight away.
- Carry on as normal. The contract remains in force under the previous rules and allowances continue to be paid – until you take out a new state-subsidised contract (from 2027, including an Altersvorsorgedepot): from then on, the new rules apply to all your contracts and to a spouse who receives allowances through you.
- Pause contributions. The contract will not be terminated; the accumulated balance will remain, but no further bonuses will be paid.
- Transfer to the new Altersvorsorgedepot. This can be done at a later date by submitting a separate application, without having to repay any allowances already received.
What you shouldn’t do is terminate the contract. In the event of termination, all allowances and tax relief received will have to be repaid to the state. In German law, this is known as schädliche Verwendung (non-qualifying use), and in most cases it is the most costly of all possible options.
Who Riester actually suits
The programme is neither good nor bad in itself. It is advantageous in specific situations — where the state top-up outweighs its drawbacks.
- Families with children. Every child born since 2008 is entitled to €300 per year, whilst those born before that date receive €185. Plus a basic allowance of €175 per adult. Given the low personal contribution, the proportion of state funding in the savings is very high.
- For those with a high tax burden. Contributions of up to €2,100 per year are claimed as Sonderausgaben (special expenses), and the tax authorities will check which is more favourable for you — the allowance or the tax deduction.
- Young people under 25. A one-off bonus of €200 upon signing the contract.
- For those who value a guarantee. Under the Riester scheme, you are guaranteed to get back at least all the money you have paid in, plus any bonuses received.
Who it is not suitable for
If you fall into at least one of the categories below, it is worth calculating carefully before signing.
- You work for yourself — self-employed or freelance — and do not pay contributions to the statutory pension insurance scheme. You have no direct entitlement to the allowances.
- Access to money is important to you. It is not possible to withdraw your savings before retirement without losing all your benefits.
- You are single, have no children, and your income is from €15,000 to €40,000 a year. There is a bonus, but it’s small, and the tax benefit on this level of income is still minimal — the costs associated with the contract could negate the whole point.
- Your spouse already has a Riester contract and child allowances are paid into that account. They won’t be paid a second time.
- You are over 50. There is little time left before the payments are due, saving up a substantial amount is no longer an option, and the contract costs are not going anywhere.
There are also general restrictions that apply to everyone. Payouts are subject to income tax in full. You may withdraw no more than 30 % of your accumulated savings in a single lump sum; the remainder can only be withdrawn through regular instalments. Furthermore, the mandatory 100 per cent guarantee on contributions forces the insurer to invest very cautiously, which significantly limits returns.
If you might leave Germany
This is hardly ever mentioned when applying, yet for many people it’s a deciding factor.
- Moving within the EU and EEA — including Norway, Iceland and Liechtenstein — does not affect allowances already received. Nothing needs to be paid back: the European Court of Justice so decided in 2009. However, new allowances will cease to be accrued.
- Moving outside the EU and EEA — before the payout phase begins, this does not affect the allowances received. But if you live outside the EU and EEA when payouts begin or later, the allowances and tax relief 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.
A special case: a secondment by a German employer with the retention of German pension insurance is not considered a relocation, and the allowances continue as usual.
What replaces it: the Altersvorsorgedepot
From 1 January 2027, a new state support system for private pension savings is being introduced. The main difference is that there is noticeably more money from the state and significantly fewer strict requirements for the product.
- Basic allowance — up to €540 a year instead of the current €175. The state adds 50 cents for every euro of the first €360 contributed and 25 cents for every euro of the next €1,440. The maximum is reached with a personal contribution of €1,800 a year, which is €150 a month.
- €300 a year per child, and just €25 a month already brings the full €300 for each child.
- Youth bonus — €200 one-off, when opening an account under 25.
- Capital guarantee is no longer mandatory. Choose between a hundred per cent guaranteed product, an eighty per cent one, or none at all in favour of a higher expected return.
- Available to the self-employed for the first time. This is a fundamental difference from the Riester scheme.
- The costs of the standard product are capped at 1 % per year.
Payments usually begin between the ages of 65 and 70. You can make a one-off withdrawal of up to 30 % of your accumulated savings, and then choose between a payment plan, which can be spread out until at least the age of 85, or a life annuity. A life annuity pays a lower monthly amount but never stops.
If you are self-employed, until 2027 it is also worth looking at the Rürup pension, and if you want to save on your own, at a regular ETF plan.
A detailed analysis of the new programme is on a separate page: How the Altersvorsorgedepot works, how much the state contributes and what to look out for when choosing.
What to ask before signing by 31 December
Until the end of the year, Riester pensions will be pushed actively — this is the last chance to take out such a contract. In itself, this is neither an argument for nor against. The arguments will be the answers to five questions.
- How much public money will I personally receive? Ask for a calculation in euros for your specific situation, rather than percentages in general.
- How much does the contract cost? Ask for the set-up and annual costs in euros for the entire term, not as a percentage of something.
- What will happen if I stop paying? And what happens if I cancel after five years.
- What will happen if I leave Germany? The answer depends on the country — see the section above.
- Why the Riester scheme specifically, rather than the Altersvorsorgedepot, from 2027? There must be a sensible answer to this question as applied to you.
If you do not get a specific figure or a specific answer to even a single question, that in itself is information.
Frequently asked questions
By what date can you take out a Riester contract?
Until 31 December 2026. From 1 January 2027, no new Riester model contracts will be concluded.
Is my contract being cancelled?
No. Contracts already concluded continue under the previous rules until you take out a new state-subsidised contract (from 2027, including an Altersvorsorgedepot): from then on, the new rules apply to all your contracts and to a spouse who receives allowances through you. The contract itself will not be converted automatically.
Is it worth getting it sorted before the end of the year?
Only if the programme genuinely suits you. From 2027, the basic allowance will increase from €175 to €540 a year, the capital guarantee will cease to be mandatory, and the self-employed will gain access for the first time. In many situations, waiting is more advantageous than rushing.
Which is more advantageous: Riester or the new Altersvorsorgedepot?
In terms of the size of the allowance and flexibility — the new Altersvorsorgedepot (pension investment account). Riester does have one advantage: you can take out a policy right now, whereas the new products won’t be available until 2027. Plus, there’s a 100 per cent guarantee on contributions, if that’s a key consideration for you.
What will happen to the allowances if I leave Germany?
Within the EU and the EEA, you do not need to repay anything. If you live outside the EU and EEA when payouts begin or later, you will have to repay the allowances and tax relief received; moving before then does not affect them. See the section above for further details.
Can a Riester pension be transferred to the new Altersvorsorgedepot?
Yes, later and upon your application. There will be no need to return allowances already received.
Need help deciding? Write to us — we will work out which is more advantageous in your situation: setting up a Riester pension scheme before the end of the year, or waiting for the new Altersvorsorgedepot.
About the author. Valery Melech, Finber. Versicherungsmakler (insurance broker) licensed under Section 34d(1) GewO and Immobiliardarlehensvermittler (real estate loan broker) under 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: Bundesregierung, “Private Altersvorsorge reformiert”; Deutsche Rentenversicherung; Bundestag, Drucksache 21/4088; GDV; Riester parameters — riester.deutsche-rentenversicherung.de; relocation rules — based on the 2009 European Court of Justice ruling.
Status. The reform has been adopted, and the new products will be introduced from 1 January 2027. The information was verified in August 2026; we review this page at least once a year, and until 31 December 2026, we will update it as further guidance becomes available.
This material is for informational purposes and does not constitute individual advice. Whether a Riester pension suits you before the end of the year or whether it is wiser to wait for the new Altersvorsorgedepot depends on your individual situation.
