Couples' Retirement 2027: Splitting Allowances Wisely

Katrin Straub

Published on 24 August 2026 · Managing Director, imatch GmbH

This article was written by an author with the support of AI.

Retirement Depot per Household: Why Two Separate Contracts Are Usually Worthwhile

When planning your retirement provision as a married couple, you should generally allocate your household budget across two separate contracts starting in 2027. State subsidies in the new Altersvorsorgedepot (AVD) are strictly tied to the individual person and their individual contract, which is why a joint account is legally excluded. Because the subsidy rate is highest on initial savings amounts, funding two contracts in parallel mathematically yields significantly more allowances than depositing the entire amount into a single contract.

The subsidy model starting from contribution year 2027 calculates the basic subsidy proportionally to contributions: up to an annual personal contribution of 360 euros per person, the state adds 50 cents for every euro saved; for additional contributions between 361 and 1,800 euros per year and person, it adds 25 cents per euro.^[1] Anyone who fully utilizes this subsidized personal contribution of 1,800 euros receives the maximum annual basic subsidy of 540 euros per person.^[2] The personal contribution of 1,800 euros is therefore the subsidy limit for deposits, and the 540 euros represent the resulting state grant. In addition, there may be a child subsidy of 100 percent on the contributions paid, reaching its maximum amount of 300 euros per child and year at an annual personal contribution of 300 euros.^[1]

For a couple, this means: if each partner first fills the highly subsidized tier of their own contract, the household receives a 50-cent basic subsidy for each euro saved on these contributions.^[1] If the same savings volume flows into only one contract, everything above an annual personal contribution of 360 euros is subsidized at only 25 cents per euro. The household's effective subsidy rate therefore drops as soon as a single contract exceeds the first tier while the partner's contract remains unfunded.

This tiered structure illustrates the leverage effect of having two contracts. Above a personal contribution of 1,800 euros per person and year, the basic subsidy does not increase further, even though deposits up to the maximum amount of 6,840 euros per year remain possible in a retirement pension contract.^[1] A married couple with two separate accounts can therefore secure the maximum basic subsidy of 540 euros per person and year twice, whereas a single contract utilizes it only once.^[1]

Eligibility Check: How Your Household Structure Determines Allocation

Whether your retirement budget should be split exactly in half or whether an asymmetrical distribution is economically more advantageous depends on the specific characteristics of your household. Four central factors determine the ideal setup:

• Employment status of both partners: If both spouses earn their own income subject to mandatory pension insurance, both are directly eligible for subsidies and can each receive up to 540 euros in basic subsidies.
• Income differences: In cases of substantial income differences, the more favorable tax deduction check (Günstigerprüfung) may yield an additional tax advantage via special expenses deduction for the higher earner that exceeds the direct subsidy.
• Existing legacy contracts: Those who already hold Riester contracts must decide whether to freeze contributions, continue them, or transfer the balance to the Altersvorsorgedepot from 2027.
• Occupational pension schemes (bAV): If an employer offers voluntary subsidies for deferred compensation beyond the statutory requirement, this vehicle competes directly with the AVD for the household budget.

When your financial situation falls at the intersection of several regulations, a simple rule of thumb is rarely sufficient. In this case, detailed modeling of subsidy entitlements using the Altersvorsorgedepot subsidy calculator is recommended to transparently calculate the optimal split for both partners in advance.

Indirect Subsidy Entitlement: The Rules for Non-Earning Partners

If a spouse earns no personal income and is not subject to statutory pension insurance (for example, as a non-working partner without recognized child-rearing periods), they have no direct entitlement to subsidies. Nonetheless, state support is not lost for this partner: through indirect entitlement pursuant to § 79 Satz 2 of the German Income Tax Act (EStG) as amended by the Retirement Provision Reform Act (Altersvorsorgereformgesetz), the non-earning partner can also receive a subsidy.

From 2027 onwards, clear statutory framework conditions apply to indirectly entitled individuals:

• Minimum own contribution of 120 euros: Starting from the 2027 contribution year, the indirectly entitled spouse must pay a minimum own contribution of at least 120 euros per calendar year into their own retirement savings contract in order to receive any basic allowance at all.^[1]
• Separate cap of 175 euros: The amount of the basic allowance for the indirectly entitled spouse depends on the contribution payments of the directly entitled spouse and is capped at a maximum of 175 euros per year.^[1] Thus, only directly entitled individuals can achieve the maximum basic allowance of 540 euros per year.
• Coupling to the main contract: The allowance is only granted if the directly entitled partner makes their subsidized retirement savings contribution and the spouses are not permanently separated.^[1]
• No separate special expense deduction: While indirectly entitled individuals have the allowance credited directly to their contract, they do not have their own tax deduction for special expenses (Sonderausgabenabzug).^[1]

Particular attention must also be paid to the interplay with existing contracts: If an indirectly entitled partner applies for an allowance for a new AVD contract while the directly entitled partner continues to hold a classic legacy Riester contract, the indirectly entitled partner has no claim to the allowance in this constellation (§ 90 Abs. 2 Satz 7 EStG). In such transitional cases, both contracts must therefore be synchronously converted to the new legal framework to avoid losing allowances.

The optimal sequence: How married couples allocate their retirement budget

To invest the available monthly household budget with optimal returns and subsidies, couples should follow a clear order of priority. At the center is the question of which vehicle offers the highest risk-free subsidy rate or employer contribution.

The following sequence has proven effective for budget allocation:

1. Employer-subsidized deferred compensation (bAV): If an entitlement to an occupational pension exists, where the employer is required pursuant to § 1a Abs. 1a BetrAVG to contribute 15 percent of the deferred salary provided they save social security contributions, or where they offer voluntary matching contributions beyond that, this component should be prioritized.^[3] Collective bargaining agreements may deviate from this.
2. AVD basic subsidy (Tier 1): Both partners fund their Altersvorsorgedepot with an own contribution of up to 360 euros per year each to capture the highest subsidy tier of 50 cents per saved euro; indirectly entitled spouses must contribute at least 120 euros per year into their own contract starting in 2027.^[1]
3. AVD expansion subsidy (Tier 2): If further budget remains, the AVD contracts are gradually topped up to an own contribution of 1,800 euros per person per year, with an allowance of 25 cents per saved euro for the portion between 361 and 1,800 euros.^[1]
4. Unsubsidized private provision: Savings amounts exceeding an own contribution of 1,800 euros per person per year no longer increase the allowance and are flexibly directed into unsubsidized ETF savings plans or unscheduled loan repayments.

The practical impact of this sequence is illustrated by two model calculations for different household constellations:

Note: Illustrative model calculation. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. The actual subsidy amount and tax effect depend on individual income circumstances and contract terms.

Limits of the household approach: Child allowance, divorce, and inheritance

Joint budget planning as a couple reaches legal boundaries because contracts under German law remain strictly tied to the individual. Three aspects cannot be resolved merely through contribution allocation and require separate decisions:

• Allocation of the child allowance: For each child, one parent receives a child allowance of 100 percent on every euro contributed; the maximum amount of 300 euros per child and year is reached with an annual personal contribution of 300 euros.^[1] It can only be credited to one contract. For married different-sex parents, it is assigned to the mother, or upon joint application of both parents, to the father.^[4] Details on the optimal transfer are explained in the guide child allowance for both parents.
• Pension equalization in divorce: In the event of divorce, retirement provision contracts fall under the Pension Rights Adjustment Act (VersAusglG). Entitlements accumulated by both partners during the marriage are split equally upon divorce, regardless of whose salary funded the personal contributions.
• Inheritability and survivor benefits: If a spouse passes away before or during the payout phase, the subsidized capital can be transferred to the surviving spouse's retirement provision depot under certain tax conditions. The exact provisions are governed by the respective payout and certification guidelines.

These intersections demonstrate that while looking at subsidy rates in isolation optimizes the contribution phase, legal arrangements and personal retirement goals must always be taken into account as well.

Outlook: Products and administrative practice take shape until 2027

The statutory framework for the retirement provision depot (Altersvorsorgedepot) has been enacted: the Bundestag passed the reform on March 27, 2026, the Bundesrat approved it on May 8, 2026, and it was promulgated at the end of May 2026; the new subsidy law applies from January 1, 2027. Providers can offer the new products starting January 1, 2027^[1]; until then, key detailed aspects of certification and administrative procedures are still being finalized. In parallel, the legal framework for company pensions is being further developed through the Second Company Pension Strengthening Act (Betriebsrentenstärkungsgesetz).

How attractive the specific terms, depot fees, and ETF selection lists of individual brokers and banks will be starting in 2027 cannot yet be definitively determined today. For couples, this means: the mathematical allocation logic is established, but the product selection will take place once the first certified depots are approved.

How a household optimally distributes its contributions ultimately depends on two employment biographies, two tax situations, individual employer offerings, and family planning. A general guide can transparently show why two contracts usually outperform a single one; however, it cannot weigh your specific salary and contract constellations against one another. Use the Altersvorsorgedepot subsidy calculator to run the numbers for your household. For complex company pension setups and individualized financial planning, the independent advisory matchmaking service from Vorsorgedepot-Lotse offers targeted support from neutral experts.

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