New in 2027
Altersvorsorgedepot 2027: the complete guide
From 1 January 2027, Germany is launching a new subsidised retirement account: the Altersvorsorgedepot. It replaces new Riester contracts. You invest in funds and ETFs, and the state adds up to €540 a year, plus €300 per child. Here is everything you need to know.
1. What is the Altersvorsorgedepot?
It's a securities account reserved for retirement, opened with a bank or broker, in which you buy funds or ETFs. Unlike Riester, there is no mandatory capital guarantee: your money can therefore be invested more in equities, with higher long-term return potential, but also fluctuations.
For those who want security, products with an 80% or 100% capital guarantee at the start of retirement are still available, with lower potential returns.
2. From when?
The reform law (Altersvorsorgereformgesetz) was passed by the Bundestag on 27 March 2026, approved by the Bundesrat on 8 May 2026 and published on 29 May 2026. The first accounts can be opened from 1 January 2027. Existing Riester contracts continue, but no new ones can be signed.
3. Who can benefit?
People already eligible for Riester, such as employees paying into the statutory pension insurance and civil servants, plus two new groups: self-employed people not subject to compulsory pension insurance, and compulsory members of professional pension schemes (berufsständische Versorgungswerke).
4. How much does the state add?
The basic subsidy depends on your annual contribution: 50 cents per euro on the first €360, then 25 cents per euro up to €1,800. You must pay in at least €120 a year (€10 a month).
| Your contribution | Per year | Basic subsidy | For every €1 paid in |
|---|---|---|---|
| €10 / month | 120 € | 60 € | 0,50 € |
| €30 / month | 360 € | 180 € | 0,50 € |
| €100 / month | 1 200 € | 390 € | 0,33 € |
| €150 / month | 1 800 € | 540 € | 0,30 € |
On top of this come up to €300 per child per year for as long as you receive Kindergeld for the child, provided you pay in at least €25 a month per child, plus a one-off €200 bonus if you open your first account before age 25.
With €50 a month (€600 a year), the state adds €240 of basic subsidy and €600 for the children, i.e. €840 a year : €1.40 for every euro paid in, as long as the children are eligible for Kindergeld.
5. The extra tax advantage
Your contributions and the subsidies can be deducted as special expenses (Sonderausgaben). The Finanzamt automatically checks whether this deduction saves you more tax than the subsidy (Günstigerprüfung) and refunds the difference.
Example: with €1,800 paid in and a 42% marginal rate, the deduction reaches €2,340, saving about €983 in tax. After deducting the €540 subsidy, you get back about 443 € more on your tax return.
6. What can go in the account?
- Funds and ETFs offered by your bank or broker. Individual shares and speculative investments are excluded.
- A standard account with two funds chosen by the provider, with effective costs capped at 1% per year.
- Some products with a guarantee of 80% or 100% of capital, if you prefer security.
7. How do you get the money back?
Payouts begin at the earliest at 65. You choose between a lifelong annuity and a withdrawal plan running until at least age 85. Up to 30% of the capital can be withdrawn at once.
During the saving phase, gains are not taxed. In retirement, amounts from subsidised contributions and subsidies are taxed at your personal rate, often lower than during your working life.
8. I have a Riester contract: what should I do?
You can transfer your Riester savings to an Altersvorsorgedepot without losing your subsidies or tax advantages. Above all, don't cancel the contract yourself: open the new account and ask the new provider to collect the savings. The transfer is free if your contract is more than five years old; otherwise, limited fees may apply. Going back to Riester is not possible afterwards.
9. Diaspora: careful if you leave Germany
Moving to another country in theEU or EEA generally does not affect subsidies already received.
However, moving outside the EU/EEA (Canada, US, Africa, Switzerland…) is as a rule treated as non-compliant use, as with Riester: the subsidies and tax advantages must then be repaid, in some cases with a possible deferral. If you are thinking of moving back home or to Canada, take stock before investing large sums.
10. A worked example
A 30-year-old pays in €150 a month until 65, with an assumed gross return of 6% per year and 0.5% fees. They receive €540 in subsidies per year.
| Altersvorsorgedepot | Classic ETF account | |
|---|---|---|
| Your contributions | 63 000 € | 63 000 € |
| Gross capital at 65 | ≈ 234 600 € | ≈ 192 200 € |
| Estimated net capital | ≈ 187 700 € | ≈ 168 400 € |
Assumptions: 20% tax in retirement for the Altersvorsorgedepot, Abgeltungsteuer with Teilfreistellung for the classic account (0.2% fees). Simplified, indicative calculation; returns are not guaranteed.
11. My view: who is it worthwhile for?
- Very worthwhile for families with children and for people paying in small amounts: every euro is heavily topped up by the state.
- Worthwhile for those with a high tax rate today who expect a lower rate in retirement.
- Think it over if you plan to leave the EU or might need this money before 65: it's locked until then.
For many people, the right strategy combines both: an Altersvorsorgedepot to capture the subsidies, and a flexible ETF savings plan to keep flexibility.
Read next: which strategy for your profile? 5 real cases
This article is for educational purposes and does not constitute personalised investment or tax advice. Rules known as of 31 October 2026, subject to change with implementing regulations.
Sources: cash-online · biallo · vorsorgedepot-lotse