Is the Altersvorsorgedepot safe? Insolvency and market risks

Tilman Freyenhagen

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

Two sides of safety: the Altersvorsorgedepot under scrutiny

Is the new Altersvorsorgedepot safe? This central question has two distinct answers: provider risk is minimal, because your invested ETFs count as state-protected special assets and remain untouched if the provider becomes insolvent. The real risk is market risk, which you now bear yourself, because the Altersvorsorgedepot drops the rigid, classic contribution guarantee in order to allow a higher-return investment on the capital markets^[1]. Short-term price swings are therefore not a flaw in this subsidised account type, but a normal part of the design.

Many safety-conscious savers are sceptical about the complete removal of state-mandated guarantees. On our knowledge section we explain this fundamental reform of private retirement provision neutrally, transparently and with sources. Historical capital-market experience reliably shows that broadly diversified equity investments held over long horizons of at least 15 years have almost always fully recovered from temporary book losses. To manage your own provision wisely, you need to separate the dimensions of risk and protection.

As a rule: your capital is legally and absolutely protected against your account provider's insolvency, while you manage the unavoidable price-fluctuation risk of the equity markets yourself, through broad diversification and staying the course.

Because the new system no longer has a blanket contribution guarantee, how risky it feels to you personally depends heavily on your individual life situation. With our subsidy calculator you can simulate the long-term cost impact and projected return potential simply and transparently. For savers who want detailed, personal guidance, our independent advice service is also available, to help you weigh the move from an old Riester contract into a higher-return account competently and with full awareness of the risks.

Protection if a broker goes bust: why your account is safe as special assets

If you are wondering whether your capital in the new Altersvorsorgedepot is protected against the provider's insolvency, the clear answer is: yes. In this state-subsidised form of private retirement provision, your accumulated assets sit under a strict statutory protective shield. All invested funds and ETFs are legally classed as special assets^[2]. That means your retirement capital must be held strictly separate from the broker's or custodian bank's own assets^[2]. Even in the extreme case of insolvency, your savings never become part of the provider's insolvency estate — they remain your fully protected property at all times^[2]. Our knowledge section offers neutral guidance on this, based on the current regulatory requirements.

In the event of a broker's collapse, your capital is protected one hundred percent against the financial institution's creditors. Should a provider of the Altersvorsorgedepot genuinely have to file for insolvency, the statutory right of disposal passes directly to the custodian bank^[2]. As an investor, you can demand the straightforward transfer of your ETF holdings to a new account at another institution in such a crisis. This transfer does not wait for a lengthy insolvency process, because your securities holdings physically exist and are legally protected. If you want to calculate and compare the exact subsidy effect, feel free to use our subsidy calculator for a transparent comparison.

For safety-conscious savers, this strict separation of investment risk and provider risk is the most important pillar of retirement provision. While you manage the unavoidable price-fluctuation risk in the markets through broad ETF diversification and a long investment horizon, the risk of a total loss through the broker's collapse is ruled out by law.

The role of the deposit guarantee: what happens to your cash?

While your securities in the new Altersvorsorgedepot, which launches in 2027, are protected as special assets, uninvested cash in the associated settlement account is covered by different statutory rules. This balance does not fall under the classic account protection but under the statutory deposit guarantee scheme. If your provider or the custodian bank has to file for insolvency, your cash balance is reliably protected through this system.

The difference between account protection and deposit protection

It is important to distinguish clearly between account protection and deposit protection. Your securities in the account always remain your property; the custodian merely holds them in trust for you. If the provider becomes insolvent, you can simply transfer the securities account to another financial institution, because the securities do not become part of the insolvency estate. Cash in the settlement account, by contrast, is held as a deposit on the partner bank's books. Here, in an emergency, the statutory deposit guarantee scheme kicks in to pay out your balance directly.

This statutory deposit guarantee scheme protects up to 100,000 euros per customer and credit institution, across Germany and the whole European Union. This protection applies automatically in the event of compensation and requires no additional safeguarding on your part. For safety-conscious savers, this means that temporary cash balances — for example from dividend payouts or ahead of a planned reinvestment — are fully protected within this limit. Even so, you should avoid leaving large cash balances sitting unremunerated in the settlement account for the long term, since inflation there erodes the real purchasing power of your capital.

For savers who prefer personal guidance when structuring their portfolio, the independent advice service offers a simple way to get in touch with licensed, independent financial advisers and clarify individual questions about splitting between financial and real assets.

The end of the contribution guarantee: opportunities and risks compared with Riester

The safety of the Altersvorsorgedepot has two sides. While provider risk in the event of insolvency is vanishingly small, there is, by default, no longer a statutory contribution guarantee compared with the classic Riester-Rente (Germany's existing subsidised private pension)^[1]. This deliberate trade-off, however, is the decisive lever for achieving real returns above the inflation rate over long investment periods and stopping the slow erosion of purchasing power.

Under the old Riester-Rente, providers were legally required to guarantee 100 percent of the contributions paid in and state allowances received at the start of the payout phase^[3]. To keep this promise, providers had to invest the bulk of your capital in government bonds with extremely low volatility but weak returns. The new Altersvorsorgereformgesetz (Retirement Provision Reform Act) breaks with this constraint and allows free capital investment in the Altersvorsorgedepot without rigid guarantees, so your contributions can flow entirely into broadly diversified ETFs.

Safety-conscious savers still don't have to forgo protection entirely. Alongside the pure account, the reform also provides for modernised guarantee products, letting you choose flexibly between an 80 percent guarantee level or, still, 100 percent^[1]. You can find detailed information via our knowledge section. In addition, the subsidy calculator helps you work through the long-term mathematical effects of different guarantee levels on your eventual pension. For tailored planning, our independent advice service is also available to you. Please note that comparisons are for illustration only and do not constitute advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Market risk under control: how fluctuations in ETFs play out over the long term

When it comes to safety, you need to distinguish fundamentally between two different risks: provider risk and market risk. While the traditional Riester-Rente relied on rigid contribution guarantees and, as a result, forfeited significant return potential, the new Altersvorsorgedepot takes a more modern approach from 2027. Your capital is invested in ETFs or investment funds, so you benefit directly from the development of the world economy. Your provider risk, meanwhile, is minimised by law: because your fund units count as special assets within the meaning of the Kapitalanlagegesetzbuch (Capital Investment Act), your money stays fully protected if the account provider or fund company becomes insolvent^[4]. It does not form part of the insolvency estate and can be transferred to another account at any time. The real issue for safety-conscious savers is therefore pure market risk.

The historical power of diversification and long investment horizons

The remaining market risk — that is, short-term price losses — is, historically, manageable in a long-term retirement investment. If you invest broadly across global equity markets, you reduce the risk of losses from any single company to close to zero. The historical development of global equity indices shows: anyone who stayed invested for 15 years or longer has, in the past, never suffered a loss, even after severe crises^[2]. For safety-conscious investors, that means: time beats timing. To make the long-term effects on your own financial future tangible, our knowledge section offers neutral analysis. You can also use the subsidy calculator to work out, simply, the expected growth of your capital including state allowances.

State guardrails: the regulated product selection in the AVD

The Bundesministerium der Finanzen (Federal Ministry of Finance, BMF) has set a clear statutory framework for the new Altersvorsorgedepot (AVD) from 2027, to protect private small investors from incalculable risks^[5]. Unlike unregulated securities saving, the AVD may only hold financial products that have passed strict state certification. The legislator defines a binding positive list of permitted asset classes for this purpose. Highly speculative instruments such as leveraged products, crypto assets or unregulated derivatives are consistently excluded. What is permitted, above all, is broadly diversified investment funds and exchange-traded index funds (ETFs) that match the standard risk classes. This ensures that your subsidised retirement provision rests on a solid, transparent foundation, without you having to forgo market-standard return potential.

With these statutory safeguards, the state demonstrates that return orientation and investor protection can go hand in hand in the Altersvorsorgedepot. The state-audited product certificate, awarded only to transparent providers, gives your financial planning a strong foundation. For detailed information about how the new account works and its legal basis, our Altersvorsorgedepot guides are available to you at any time. That way, you can decide with confidence and good information whether this subsidised route is the right choice for your personal provision.

Switching from a Riester contract: safety aspects of transferring your balance

For holders of an existing Riester contract, a central question arises from 2027: is switching to the new Altersvorsorgedepot worthwhile? By law, you can transfer your accumulated Riester balance directly into the new account, with the new tax rules and product terms applying from that point^[1]. From a safety perspective, however, this step means a deliberate change of system. While classic Riester tariffs mandate a statutory guarantee for the contributions paid in, that strict contribution guarantee falls away with the Altersvorsorgedepot. Safety-conscious savers therefore need to weigh the previous safety net against the significantly higher long-term return potential of ETF investment strategies. A transfer is thus not a mere administrative act, but a fundamental realignment of your risk profile in private retirement provision.

Giving up the contribution guarantee may initially feel unsettling for safety-conscious investors, but viewed historically this market risk becomes far less significant over long investment horizons. Broad global equity indices have historically and reliably offset losses over periods of fifteen to twenty years and delivered a positive return. In addition, the Altersvorsorgedepot offers excellent, statutorily anchored protection against provider risk: the invested ETF units are legally classed as special assets and are fully protected — and do not form part of the insolvency estate — if the account provider or custodian bank becomes insolvent. You should check any transfer fees charged by your old provider carefully in advance, to make sure the switch makes economic sense. To make a well-founded decision between keeping your old Riester guarantees and moving into a higher-return account, you can use our subsidy calculator or find out more in detail in our knowledge section. Please note: the calculations and scenarios shown are purely illustrative and do not constitute investment advice. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Decide for yourself or seek advice: the path to your optimal provision

The question of whether the new Altersvorsorgedepot is safe is best answered by consistently separating market risk from provider risk. While securities price fluctuations on the capital market are an unavoidable part of return development, your assets are fully protected against the insolvency of the bank or fund company. As legally defined special assets, your accumulated capital remains untouched if the account provider collapses and does not form part of the insolvency estate. The real risk lies in the market's price risk, because the Altersvorsorgedepot, unlike the classic Riester-Rente, dispenses with rigid contribution guarantees in order to enable significantly better long-term return potential^[6].

Two equally valid paths are open to you on our site toward your optimal provision. In our knowledge section you will find all the legal and tax framework explained clearly, so you can inform yourself comprehensively. For a precise calculation of your personal allowances and expected final capital, our subsidy calculator is also available to you free of charge. With this digital tool, you can easily compare different scenarios to find out whether switching from an existing Riester plan is financially advantageous for your individual situation.

Choosing the right strategy ultimately depends on your personal need for safety. Whether you use our provider comparison to build your account on the capital market on your own terms, or arrange a personal orientation conversation with a licensed expert through our independent advice service, you always make an informed decision based on neutral and reliable facts. The two-track approach of our site offers the right solution for every need. Please note: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.