Until when can I still take out a Riester contract?

Tilman Freyenhagen

Published on 24 July 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

The 31 December 2026 deadline: when the window to take out new Riester contracts closes

By law, new Riester contracts can only be taken out until 31 December 2026. From 1 January 2027, banks, insurers and financial service providers may no longer sell the old Riester tariffs, since the statutory deadline is when the Altersvorsorgedepot takes over as its successor^[1]. Anyone who concludes a legally valid Riester contract before that deadline enjoys unrestricted grandfathering and can keep the existing state subsidy permanently.

The legal basis for the sales stop and the seamless transition

The legal basis for the end of new Riester contracts is the Altersvorsorgereformgesetz (Retirement Provision Reform Act, AVRG). Under the amended rules of the Altersvorsorgeverträge-Zertifizierungsgesetz (AltZertG, the certification act for retirement-provision contracts), old certifications lose the right to further sale once 31 December 2026 expires, so existing Riester tariffs automatically lose their certification basis for new business. The legislature is thereby carrying out a seamless transition from the contribution-guarantee-based Riester-Rente to the new subsidised capital-market investment, which begins with the launch of the Altersvorsorgedepot from January 2027^[2]. For applications submitted at the end of 2026, timely processing by the provider is required.

• 31 December 2026 deadline: the last date to conclude a classic Riester contract with legal validity.
• Sales stop from 1 January 2027: the statutory end of new business for tariffs under the old certification.
• Guaranteed grandfathering: all contracts concluded by the end of 2026 keep their allowances and tax advantages unchanged.
• New system from 2027: the Altersvorsorgedepot fully replaces the Riester-Rente for new contracts.

Whether taking out a contract in 2026 makes sense, or whether waiting for the new system has advantages, depends on individual factors. As a neutral guide, we help you weigh up the remaining deadline and the criteria for your decision transparently.

Applications in progress at the deadline: which processing timelines apply at the end of 2026

Simply sending in the application form on 31 December 2026 is not legally sufficient for a Riester contract to be validly concluded. Under the legislature's rules, contracts under the old legal regime may no longer be sold or newly concluded from 1 January 2027. What matters for grandfathering is the contract becoming legally effective — that is, the provider accepting the application and issuing the policy before the year changes^[4]. Anyone deciding whether to still take out a contract under the old rules needs to factor in the processing lead times at banks and insurers.

Process steps and lead time needed before the end of 2026

• Postmark vs. receipt: a timely postmark alone does not guarantee the contract is concluded. What counts is actual receipt by the provider and their subsequent declaration of acceptance.
• Internal processing lead time: financial service providers typically need two to three weeks for identity checks (such as PostIdent or VideoIdent), reviewing whether to accept the application, and issuing the policy.
• Complete documentation: incomplete applications or missing signatures lead to rejection after 31 December 2026, since corrections can no longer be legally processed for old-style contracts in the new calendar year.
• Receipt of the first contribution: many providers also require the first own contribution to arrive on time within the current savings year, to secure the tax allocation for 2026.

Because of the extra administrative burden, many product providers stop selling existing Riester tariffs several weeks before the deadline. Anyone planning to take out a contract should therefore ideally submit complete documentation by mid-November, or by early December at the latest. If the provider's acceptance only comes through in the new year, the application is rejected. In that case, the only subsidised path forward is the newly regulated launch of the Altersvorsorgedepot from 2027.

Grandfathering for existing contracts: what continues after 1 January 2027

All Riester contracts validly signed up to and including 31 December 2026 enjoy unlimited statutory grandfathering. That means the launch of the new subsidy system on 1 January 2027 does not cancel existing contracts. As a saver, you keep all contractually agreed guarantees, as well as your entitlement to the existing state subsidy, untouched. No one is legally forced to give up an existing Riester product or switch to the new Altersvorsorgedepot.

The three central pillars of continuation

• Guaranteed minimum benefit: the contribution guarantee agreed in the old contract remains fully intact. Your provider remains obliged to safeguard the capital you've paid in for annuitisation.
• The existing allowance and tax system: you continue to receive the familiar basic allowance (Grundzulage) of up to 175 euros a year, plus any child allowances (Kinderzulagen) under the existing rules. The special-expense deduction (Sonderausgabenabzug) on your income tax return also continues to apply unchanged.
• Flexibility on contributions: you can suspend contributions to your Riester contract at any time, or adjust your savings rate, without losing your grandfathering.

Should you decide to switch at a later point after 1 January 2027, that option generally remains open. The law provides that the balance from an existing contract can be transferred to a new product while carrying over the allowances accrued so far^[6]. A hasty switch before the deadline is therefore not necessary, since you retain full freedom of action.

The switching option from 2027: from a Riester contract to the Altersvorsorgedepot

Holders of existing Riester contracts face key decisions once the pension reform launches on 1 January 2027^[7]. For contracts concluded by 31 December 2026, the legislature guarantees unrestricted grandfathering. For you, that means no one is forced to give up a product that's working. At the same time, the statutory rules open up structured routes for moving existing retirement assets, or future savings contributions, into the higher-return Altersvorsorgedepot. A well-planned Riester switch secures you modern flexibility with full deductibility.

The three transition models at a glance

• Staying with the old contract: you continue your contract unchanged, with its existing guarantee structure (100 percent contribution guarantee) and familiar allowance-based subsidy.
• Switching the subsidy on contributions: the old contract stays in place, but you declare to your provider that future contributions should be subsidised under the new rules.
• Full capital transfer: the total capital saved so far is transferred directly into a certified Altersvorsorgedepot. Allowances and tax benefits already received remain fully intact.

The statutory framework provides for simplified processes. Making the declaration to your contract partner is enough to set the course for the new subsidy. For the capital transfer, the law sets strict caps on any switching costs, so your balance isn't reduced by high fees. One central point is avoiding an independent contract termination: anyone who cancels their contract early and has the money paid out retroactively loses all state allowances. A direct transfer from provider to provider, by contrast, ensures the tax-neutral continuity of your retirement provision.

Please note that calculations and comparisons are for guidance only and must always take your individual life situation into account. (Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

Special case, last-minute contracts: who a Riester start in 2026 is still worth it for

Taking out a new Riester contract shortly before the 31 December 2026 deadline still makes financial sense for certain groups, despite the upcoming system reform. Anyone who can achieve a high subsidy ratio with a small own contribution is making optimal use of the existing subsidy structure. For families with children and people on lower incomes, the existing subsidy system offers reliable leverage.

• A high allowance ratio for low earners: with a statutory minimum own contribution of just 60 euros a year, even small savings contributions of your own trigger the full state basic allowance (Grundzulage) of 175 euros, plus any child allowances.
• Full contribution guarantee: the classic Riester-Rente guarantees, in nominal terms, 100 percent of the own contributions paid in and allowances received at the start of retirement, giving risk-averse savers maximum stability.
• An option for a future transfer: the statutory grandfathering fully protects the rights you've acquired, while from 2027 you also have the option of transferring your contract capital into the new Altersvorsorgedepot.

Weighing up the established Riester-Rente against the Altersvorsorgedepot available from 2027, the trade-off between guarantees and return potential is central. The future subsidy system does away with the strict contribution guarantee, which allows for higher equity ratios and higher-return ETF investments. Riester, by contrast, stands for guaranteed nominal security. Anyone who prioritises contribution guarantees, and who achieves a direct subsidy return of over 50 percent through the allowance structure, will find a profitable basis in a last-minute 2026 contract.

We recommend precisely working out your personal subsidy ratio before the end of 2026. Where the state allowances cover a large share of your contributions, taking out a Riester contract before the system change remains a mathematically well-founded decision. (Note: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

Why the deadline exists: the system change from Riester to the Altersvorsorgedepot

The mandated end for new Riester contracts on 31 December 2026 is no accident, but the result of a fundamental reform of subsidised private retirement provision. The legislature is progressively withdrawing the sales permit, as of that deadline, from contracts approved under the existing Altersvorsorgeverträge-Zertifizierungsgesetz (AltZertG, the certification act for retirement-provision contracts). The background to this regulatory cut is the structural weaknesses of the existing Riester system: because of the statutory 100 percent contribution guarantee, providers were forced to invest savers' capital predominantly in low-yield bonds. Combined with comparatively high set-up and administration costs, this led to insufficient returns on many contracts.

With the Altersvorsorgereformgesetz (Retirement Provision Reform Act), the Bundesministerium der Finanzen (Federal Ministry of Finance, BMF) aims to make private retirement provision more modern, cheaper and higher-yielding. From 1 January 2027, the new Altersvorsorgedepot takes the place of the existing Riester new-business. The key difference lies in the future freedom of choice over guarantees, and direct access to higher-return investment vehicles such as ETF savings plans.

• End of AltZertG sales approval: from 1 January 2027, providers may no longer sell contracts under the old certification criteria.
• BMF guidelines on the system change: contracts concluded before the deadline enjoy full grandfathering and can be continued unchanged.
• Focus on capital-market returns: by giving up rigid contribution guarantees in the Altersvorsorgedepot, a markedly higher share of savings will in future flow into productive real assets.

For you, this system change means a clear fork in the road: anyone who still takes out a Riester contract in 2026 is deliberately choosing the old subsidy model with a full contribution guarantee, but accepts the well-known cost drawbacks in exchange. Anyone who waits, by contrast, uses the flexibility of the Altersvorsorgedepot from 2027. We help you compare both paths objectively and choose the form of retirement provision that suits your life situation.

Common misconceptions about Riester deadlines and cancellations before 2027

Unsettling misinformation about the future of existing Riester contracts is circulating around the reform's launch in 2027. The most important principle is this: statutory grandfathering applies to all contracts concluded before 1 January 2027^[8]. You are in no way obliged to cancel your contract because of the new system being introduced. All the state Riester allowances and tax benefits you've earned by then remain fully yours. A hasty cancellation, by contrast, leads to detrimental use: in that case, the Zentrale Zulagenstelle für Altersvermögen (ZfA, the central allowance office for retirement savings) reclaims all the subsidy money granted in full, and accrued gains have to be taxed retroactively.

Your options for existing contracts at a glance

• Continuing under the old rules: you keep paying into your contract unchanged and continue to receive the existing allowances and the familiar special-expense deduction.
• Suspending contributions (dormancy): if you no longer want to pay in further contributions from 2027, you can let your Riester contract lie dormant. The capital built up so far stays in the contract, earning interest, without any subsidy having to be repaid.
• A regulated balance transfer: from 2027, it will be possible to transfer your existing retirement assets into a new Altersvorsorgedepot without losing your subsidy.
• Cancellation detrimental to subsidy status: manually terminating the contract before retirement forfeits allowances and tax advantages. Financially, this step is almost always disadvantageous.

We therefore recommend staying calm, and not mistaking the 31.12.2026 deadline for any obligation to cancel. We work out for you, transparently and based on BMF guidance, exactly how the system change affects existing Riester contracts. Through our knowledge section, we provide you with factual comparisons and decision-support tools on this.

Your decision path before year-end: how to make the right retirement-provision choice

Ahead of the 31 December 2026 deadline, undecided savers face a strategic choice. Anyone who takes out a Riester contract by the end of the year secures statutory grandfathering and keeps the free option, from 2027, of staying in the old system or switching to the new subsidy^[9]. To make the decision that's right for you, we recommend a structured review of your personal subsidy eligibility and income planning.

Three steps to a well-founded decision before the deadline

1. Reviewing your subsidy situation: check your entitlement to the basic allowance and child allowances, as well as your tax situation in the current calendar year.
2. Comparing your contribution options: weigh guarantee-focused old contracts against the return-oriented market opportunities of the coming Altersvorsorgedepot.
3. Choosing your decision path: decide whether you want to manage your retirement provision yourself or prefer personal advice.

For a numerical comparison, our subsidy calculator is available to you. It lets you objectively work out your own contributions, state allowances and the cost impact. Our knowledge section provides further background analysis and the legal framework.

Decision matrix for self-deciders and those seeking advice

Whichever path you choose: objective preparation before year-end gives you reliable guidance for your financial future. All model calculations serve neutral information purposes and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.