Altersvorsorgedepot explained simply

Tilman Freyenhagen

Published on 15 June 2026 · Updated on 7 August 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

What is the new Altersvorsorgedepot?

Put simply, the Altersvorsorgedepot is a state-subsidised retirement savings account that invests directly in high-return securities such as ETFs. You pay in a monthly contribution of your own, the state adds generous allowances on top, and over the decades a tax-privileged pot of savings builds up. As the modern successor to the Riester-Rente, the account launches on 1 January 2027 and forgoes expensive contribution guarantees to give you significantly better return prospects^[1].

Think of the account like a traditional savings book, but with two crucial differences. First, your savings aren't eroded by inflation — they're invested in broadly diversified ETFs that benefit from global economic growth over the long term. Second, the German state rewards your private initiative directly: for your own contributions you'll receive a tiered state Grundzulage (basic allowance): 50 percent on the first 360 euros per year and 25 percent on further contributions up to 1,800 euros.^[3] That's an immediate state top-up of your own contributions, before the ETFs have even begun to grow on the financial markets. (Note: all calculations are illustrative and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

• State allowances: you receive a Grundzulage of 50 percent on the first 360 euros and 25 percent on further contributions up to the subsidy threshold of 1,800 euros.
• ETF focus: your capital is invested in low-cost, broadly diversified index funds instead of expensive insurance products.
• No contribution guarantee: because there's no rigid guarantee requirement, your savings instalments flow entirely into building your wealth.
• Flexibility: you can adjust the account as needed, pause contributions, or switch provider if required.

For newcomers, retirement provision can seem dry and complicated at first. To make getting started as easy as possible, the knowledge section offers easy-to-follow guides and independent comparisons. That way you always keep track of the legal rules and can decide calmly whether to manage your account yourself later on or get professional support. Also try our subsidy calculator to see directly how much the state contributions can grow your personal savings.

How does the state subsidy work?

The new Altersvorsorgedepot launches on 1 January 2027 as the state-subsidised successor to the Riester-Rente. It makes it especially easy for savers to benefit from state contributions. The principle is simple: for every euro you pay into your account out of your own pocket, the state adds a fixed percentage on top as a subsidy. That money flows straight into your chosen investments, such as broadly diversified ETFs, and starts working for you from day one. So you don't have to build your retirement savings entirely on your own. This direct support is an especially powerful lever for newcomers, because the state contribution immediately joins in the compound-interest effect.

• On the first 360 euros you pay into the account yourself per calendar year, you receive a state subsidy of 50 percent. That gives you a top-up of up to 180 euros.
• On all further contributions above 360 euros, you receive a state subsidy of 25 percent. This tier applies up to a maximum total annual own contribution of 1,800 euros and brings you up to 360 euros in additional subsidy.

So if you pay in the optimal amount of 1,800 euros a year yourself, you get the maximum annual Grundzulage of 540 euros added directly by the state. This subsidy rate is set in law, and you can look up the details directly with the Federal Ministry of Finance (BMF)^[3]. To receive this maximum bonus, you need to save the equivalent of 150 euros a month. You can quickly work out exactly how these amounts affect your personal savings rate with the subsidy calculator on our portal. Further easy-to-follow explanations of all the tax rules and comparisons are also available in the knowledge section.

Note: the calculations and worked examples shown in this section are for illustration only, to explain the statutory subsidy logic. They do not constitute investment advice within the meaning of Section 1(1a) No. 1a of the Banking Act (Kreditwesengesetz, KWG).

Extra allowances for families and career starters

From 2027, the new Altersvorsorgedepot is attractive not only for its tax-free accumulation phase and flexible ETF selection, but also for targeted additional state benefits^[3]. With the private pension reform, the federal government wants to support families with children in particular, along with young people who start building wealth early. These state contributions are paid directly into your account, increasing your invested capital from the outset without requiring any extra savings of your own.

For families, the Altersvorsorgedepot proves to be an especially powerful lever. On top of the general Grundzulage, the state pays an annual allowance of up to 300 euros directly into the ETF account for every child that qualifies for Kindergeld, provided the required minimum own contribution is made. With several children, this subsidy quickly adds up to four-figure sums over the full term. Over a period of, say, 18 years, the Kinderzulage alone builds a considerable pot of capital, further boosted by returns on the stock market. Illustrative example, not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The reform also offers a strong financial incentive for career starters under 25. Anyone who opens an Altersvorsorgedepot early on benefits from a one-off state starter bonus of 200 euros. This bonus may seem small at first glance, but thanks to the long-term compound-interest effect over 30 to 40 years, this initial contribution can make a noticeable difference to your final capital. Exactly how much these allowances and bonuses matter for you individually can be calculated precisely. Use our neutral, source-based subsidy calculator to work out your personal benefits for 2027 transparently.

Riester vs. Altersvorsorgedepot: why returns are rising now

The classic Riester-Rente faced a fundamental problem: the statutory 100 percent contribution guarantee. To guarantee that savers would get back at least what they had paid in when their pension began, providers had to invest the capital mostly in very safe but extremely low-yielding government bonds. In times of low interest rates, that produced minimal returns, often below the inflation rate. From 2027, the new Altersvorsorgedepot breaks with this principle. By deliberately dropping the rigid guarantee requirement, you can invest your savings entirely in return-oriented asset classes such as global ETFs. That significantly increases the long-term growth potential of your retirement savings. You can find more detailed information on this in our knowledge section.

A look at historical data for the global stock market shows just how much this difference matters. According to the Deutsches Aktieninstitut (German Equity Institute), savers who invested monthly via a savings plan in the MSCI World global equity index over a 20-year period achieved an average return of 8.6 percent a year^[4]. At that kind of performance, the compound-interest effect builds enormous leverage over the decades — leverage that guarantee costs mostly prevented in Riester products. Please note that past performance is no guarantee of future results, and these calculations are purely illustrative (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG). To calculate your individual opportunities and state subsidies transparently, the subsidy calculator is available free of charge on our platform.

Dropping the mandatory guarantee does mean greater volatility during the accumulation phase, but it gives you the historically proven chance to build real wealth for retirement. For a smooth switch or fresh start from 2027, it's important to know your own risk appetite precisely. While self-directed savers can set up the new account directly through a low-cost neobroker, qualified guidance is a good option if you're unsure. Both paths are equally valid and lead you to a well-founded decision for your private pension provision.

The compound-interest effect: a worked example over 30 years

To understand how the new Altersvorsorgedepot works, it helps to look at the compound-interest effect. This effect means your savings don't just grow in a straight line over the years — they accelerate as profits are reinvested. If you regularly invest a small amount in broadly diversified ETFs, your returns keep working for you in the following years. A simple savings plan with a monthly contribution of 100 euros impressively shows the momentum that builds up over a long investment horizon when the annual return is continuously reinvested^[5].

The worked example shows that after 30 years, at an assumed average return of 6 percent a year, more than half of your total final capital comes from the compound-interest effect. While you yourself paid in a total of 36,000 euros, the pure growth amounts to a substantial 64,451 euros. The exponential curve of the investment shows up especially clearly in the last ten years, as the profits already accumulated generate ever-larger returns. Please note the important legal disclaimer: these figures are for illustration only and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Within the Altersvorsorgedepot, which from 2027 paves the way for modern private retirement provision with stronger return potential, this performance can be boosted further still by state allowances and tax benefits. The state supports your saving efforts directly, which increases your effective savings rate at no extra cost to you. With our subsidy calculator, a few clicks let you work out how much your personal subsidy comes to and how these allowances affect your expected final capital in the long run.

Taxes and costs: what you need to know

For long-term retirement provision, taxes and fees play a decisive role in your final tally. The new Altersvorsorgedepot pulls on two levers here to protect your returns: a tax subsidy and a strict statutory cost cap. Taxation follows the principle of deferred taxation, meaning your tax liability is pushed back to the payout phase. While you pay in money over the decades and invest it in ETFs, all dividends and capital gains stay completely tax-free inside the account. Tax is only due once you withdraw money from the account in retirement. Because your personal tax rate in retirement is typically much lower than during your working life, you benefit from a noticeable tax saving.

A decisive advantage of the Altersvorsorgedepot over many traditional pension insurance policies is the statutory cap on provider fees. For the so-called Standarddepot (the statutory default account), the legislator has fixed a cost cap of a maximum 1.0 percent effective costs a year, as set out in the Federal Ministry of Finance's FAQ^[3]. This cap ensures that costly contract fees and sales commissions can't eat away at your return unnoticed. Compared with older Riester contracts, which were often burdened with high administration fees, the Altersvorsorgedepot lets you actually keep the largest share of the performance.

You can work out exactly how much the combination of tax relief and low costs affects your future pension pot. Use the subsidy calculator on our portal for this. That way you can see transparently how much wealth you can build compared with an unsubsidised savings plan. Please note the legal disclaimer: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Who especially benefits from the new account?

The Altersvorsorgedepot launching in 2027 isn't an exclusive product for experienced investors — it's aimed squarely at a broad section of the population. Combining strong-return ETFs with state allowances, it suits almost anyone who wants to save for retirement in a structured way. A particular advantage lies in the high flexibility of contributions, which can be adapted to different life situations. To find out how much personal state support you'd get, it's worth taking a look at the subsidy calculator. The legal basis for the state subsidy is firmly anchored in the adopted and promulgated Altersvorsorgereformgesetz (pension reform act)^[3][6].

For the self-employed and freelancers in particular, the reform closes a painful gap in private retirement provision from 2027. While these groups mostly missed out under the old Riester-Rente, because they weren't compulsorily insured under the statutory pension insurance, they now get full access to state-subsidised ETF investing. Because the self-employed often have irregular income, they especially benefit from being able to adjust contributions flexibly, or to pay in only the annual minimum contribution of 120 euros in weaker business years to keep their pro-rata subsidy. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

For families, thanks to generous Kinderzulagen of up to 300 euros per child, the account offers enormous leverage on their own return. Even moderate monthly savings rates can build up a considerable pot of wealth over the years this way. Low earners, who often can only afford the minimum contribution, also benefit from a disproportionately high subsidy rate relative to their own contribution. The knowledge section offers easy-to-follow worked examples on this.

Your next steps towards the Altersvorsorgedepot

The official launch of the new Altersvorsorgedepot is set in law for 2027, as the Federal Ministry of Finance sets out in its publications on the private pension reform^[3]. For you, this timeframe means you can prepare for the new options today, completely stress-free and without any time pressure. On the Vorsorgedepot-Lotse portal, we guide you step by step towards the right decision for your financial future.

Two equally valid paths to success

For putting this into practice, the portal offers you two equally valid, neutral paths. There's no rigid rule here, just free choice: you can either take charge of your retirement provision completely on your own, or have qualified experts guide you. Both approaches are equally respectable, and the right one depends solely on your personal preferences and your individual need for information.

• Step 1: work out your potential. Use the subsidy calculator to find out your expected allowances, future final capital, and the cost impact of switching — transparently and without registering.
• Step 2: compare offers. If you're comfortable online and want to run your account yourself, the provider comparison tool will help. Use it to compare the terms and ETF ranges of different brokers, objectively and directly.
• Step 3: get advice. If you have open questions of detail or want personal reassurance, our independent advice service can support you. We arrange a free conversation with a licensed financial adviser who guides you neutrally.

Whichever path you ultimately choose, what matters is that you familiarise yourself with the basics in good time. Use the time remaining before the official product launch to deepen your knowledge at the knowledge section. Thorough preparation is the surest protection against hasty decisions, and ensures you receive the maximum state subsidies for your pension from 2027.