AVD maximum contribution & allowances 2027: all limits

Tilman Freyenhagen

Published on 13 August 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

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

All subsidy limits from 2027 at a glance

With the state-subsidised Altersvorsorgedepot, the maximum annual contribution from 2027 is 6,840 euros, of which up to 1,800 euros of your own contribution is directly subsidised^[1]. The maximum state basic allowance (Grundzulage) is 540 euros a year from the 2027 contribution year and arises from two consecutive tiers applied to the same contribution: 50 per cent on the first 360 euros and, on top of that, 25 per cent on the portion from 360.01 euros to 1,800 euros^[2]. From 2027 this system is complemented by a child allowance (Kinderzulage) of up to 300 euros per child, whose maximum is already reached at 300 euros of your own contribution per child, and by a one-off career-starter bonus (Berufseinsteigerbonus) of 200 euros for anyone who takes out a pension contract before their 25th birthday^[1].

By passing the Altersvorsorgereformgesetz (AVRG), the legislator has defined the legal framework bindingly: the Bundestag adopted the reform on 27 March 2026, the Bundesrat gave its consent on 8 May 2026, the act was promulgated in the Federal Law Gazette on 29 May 2026 (BGBl. I No. 156), and implementation follows on 1 January 2027, from which point the new pension products are available^[1]. All the upper limits, percentages and fixed amounts form a single set of rules from the 2027 contribution year, replacing the previous Riester logic. Should your personal income or family situation sit exactly on the thresholds of these subsidy tiers, your optimal savings rate can be determined precisely with the Förderrechner Altersvorsorgedepot (subsidy calculator).

These figures provide a reliable basis for structured financial planning from 2027. Below we analyse how the arithmetic plays out for concrete savings amounts.

How the proportional basic allowance is calculated

From 2027 the mechanics of the state basic allowance follow a clearly defined scale. Unlike an income-dependent minimum own contribution, the allowance will in future be calculated in proportion to contributions, so it depends directly on the size of your own contribution in the contribution year. For the first 360 euros of your own contribution in the year, the state adds 50 cents for every euro saved, which comes to up to 180 euros. For the next 1,440 euros, that is the portion from 360.01 euros to 1,800 euros, a further 25 cents per euro is added, so up to 360 euros. The two rates therefore do not apply as alternatives but one after the other to different parts of the same contribution^[1].

• Own contribution of 360 euros a year (30 euros a month): you use up the first tier in full and from 2027 receive 50 cents for every euro saved, that is 180 euros of basic allowance.
• Own contribution of 1,200 euros a year (100 euros a month): the first 360 euros attract 180 euros of allowance, the further 840 euros attract 25 cents per euro, that is 210 euros; together 390 euros of basic allowance from 2027.
• Own contribution of 1,800 euros a year (150 euros a month): the first 360 euros attract 180 euros, the further 1,440 euros attract 360 euros; this produces the maximum basic allowance of 540 euros a year from 2027.

Payments beyond the sum of 1,800 euros are permitted in the Altersvorsorgedepot up to the maximum contribution of 6,840 euros a year. However, amounts above the 1,800-euro threshold generate neither further allowances nor an additional tax benefit: the special-expenses deduction under § 10a EStG is capped at the subsidised maximum own contribution of 1,800 euros a year plus the allowances. The advantage of these additional payments lies solely in the accumulation phase, in which returns are reinvested tax-free within the depot. All model calculations and example figures serve as illustrative orientation and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Scope: who benefits from the new rules

From 2027 the group of people eligible for the Altersvorsorgedepot is defined considerably more broadly than under the old Riester system. Alongside employees, from 2027 the self-employed, freelancers and traders can also benefit from the state subsidy^[1]. Directly eligible are self-employed people with income under § 15 or § 18 Absatz 1 Nummer 1 bis 3 of the Income Tax Act (EStG) who have filed a tax return, as well as compulsory members of a professional pension institution; the Finance Committee expressly added this extension to the self-employed and members of professional pension schemes^[2]. This removes the previous complexity around establishing compulsory insurance status.

• Families with children: for each child, one parent receives a child allowance from 2027 of 100 per cent on every euro paid in; the maximum of 300 euros per child is reached at an annual own contribution of 300 euros. That corresponds to a monthly savings contribution of 25 euros.
• Career starters under 25: anyone who takes out a pension contract before their 25th birthday receives a one-off career-starter bonus of 200 euros.
• Self-employed people and freelancers: from 2027 they are in principle directly eligible for the subsidy; with the introduction of the contribution-proportional allowance, the previous calculation of the income-dependent minimum own contribution also falls away.

The precise shape of your own savings rate always depends on the overall picture of contributions, number of children and age. If your own situation sits on the thresholds of these subsidy tiers, it is worth looking closely at the Förderrechner Altersvorsorgedepot (subsidy calculator) to determine the exact intersection between your contribution and the maximum allowance rate.

Correction: adopted figures vs. the draft bill

Many publications and older press reports still circulate figures from the government draft of December 2025. That draft provided for a fixed allowance in cents per euro saved: 30 cents per euro up to a savings amount of 1,200 euros and, for every further euro up to 1,800 euros, another 20 cents. It is essential to note that these draft figures never came into force: in March 2026 the Finance Committee replaced the fixed cent amounts with the percentage-based subsidy of 50 per cent up to 360 euros, 25 per cent up to 1,800 euros and a maximum basic allowance of 540 euros, and only these values apply from 2027^[2].

The values anchored in the adopted act — 50 per cent, 25 per cent and a maximum basic allowance of 540 euros — therefore apply for contribution years from 2027; the new products are available from 1 January 2027^[1]. For your own financial planning, use only the final statutory figures and do not let outdated draft documents unsettle you.

Minimum contribution, low earners and outstanding ordinances

Alongside the fixed upper limits, there are statutory conditions governing the minimum own contribution (Mindesteigenbeitrag). From the 2027 contribution year, the basic allowance and child allowance are only granted if you pay a minimum own contribution of 120 euros a year^[3]. However, those 120 euros are only the entry threshold for the entitlement, not the amount needed for the full subsidy: the maximum basic allowance requires 1,800 euros of own contribution, and the full child allowance 300 euros per child. The old Riester rule, under which an income-dependent minimum own contribution had to be paid, falls away with the contribution-proportional allowance.

By contrast, the much-discussed low-earner bonus (Geringverdiener-Bonus) is not an open point: it is simply not contained in the final version of the act. The frequently cited fixed amount of 175 euros with an income limit of 26,250 euros comes from the failed reform draft of 2024 and was not carried over; the only 175 euros in the adopted act is the allowance cap for indirectly eligible spouses. Instead, the act supports small incomes through the 50 per cent tier of the basic allowance, the child allowance and precisely this low minimum own contribution of 120 euros. You can read the detailed assessment in our article Geringverdiener-Bonus im Altersvorsorgedepot.

• Statutory floor contribution: a minimum own contribution of 120 euros a year from the 2027 contribution year as a precondition for the basic and child allowance.
• Administrative and implementing ordinances: details of interfaces, the technical reporting channels of the Central Allowance Office for Retirement Assets (Zentrale Zulagenstelle für Altersvermögen, ZfA) and waiver rules are still being drawn up by the authorities.
• Standard depot from a public provider: the federal government is empowered to regulate the implementation of a standard depot contract offered by a public provider by ordinance without the consent of the Bundesrat; this ordinance is still outstanding.

Such organisational and procedural questions do not affect the allowance levels adopted in law, but they do warrant attention as time goes on. For unclear individual cases, the team at the Unabhängige Beratungsvermittlung is on hand to provide reliable clarity.

Outlook for 2027 and your next step

The legal framework for the Altersvorsorgedepot has been settled since spring 2026. By the market launch on 1 January 2027, the remaining implementing ordinances will be finalised and the subordinate ordinances officially published. The allowance and maximum amounts written into the act are not affected by this: they are fixed for the 2027 contribution year.

• Monitoring the implementing ordinances: following the final ordinances on reporting channels and technical interfaces over the course of 2026.
• Taking stock of your own contracts: reviewing existing Riester contracts for costs and switching options before the 2027 cut-off.
• Calculating the optimal subsidy rate: determining the right own contribution taking the basic allowance and child allowances from 2027 into account.

Which of these limits bites first in your case — the subsidised band up to 1,800 euros, the ceiling of 6,840 euros, or your family situation for the child allowance — depends on your income, your children and how the contracts are split. The Vorsorgewissen knowledge portal and our Förderrechner Altersvorsorgedepot (subsidy calculator) apply the whole set of thresholds to your personal data in one pass and show you exactly the contribution that maximises your state subsidy.

To understand your personal pension position transparently today and stay on the safe side, use the Förderrechner Altersvorsorgedepot (subsidy calculator) now with your income and family details. Our experts will support you with the next steps on request and keep you up to date on regulatory developments.