Does the Altersvorsorgedepot pay off for families with children?

Tilman Freyenhagen

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

The status from 2027: why the new Altersvorsorgedepot is a milestone for families

Does the new Altersvorsorgedepot pay off for families with children once it launches in 2027? Yes - for most families, the Altersvorsorgedepot generally pays off significantly: both parents each receive a Grundzulage, and an additional Kinderzulage comes on top for every child. The state often covers a substantial share of the annual savings rate, which means the subsidy rate for families comes out well above average compared with single people. If you split contributions strategically between both partners, you make the most of the state's family subsidy and build a high-return ETF account without the rigid contribution guarantees of the old Riester-Rente.

The reform of private pension provision on 1 January 2027 marks the start of a new era for young parents^[1]. The unprofitable Riester guarantees, which ate up a large share of the return during periods of low interest rates, fall away entirely under the new model. Instead, the new Altersvorsorgedepot invests directly in broadly diversified ETFs and equity funds. In our knowledge section, we guide you through this historic transition with accessible guides that help you secure your state subsidies with legal certainty.

• Two Grundzulagen: with their own contract, both parents can each receive an annual Grundzulage of up to 540 euros.
• Kinderzulagen as a lever: for every child entitled to Kindergeld (child benefit), the state pays an allowance of up to 300 euros a year directly into the account.
• Minimum own contribution: to be eligible for allowances at all, you only need to pay in at least 120 euros a year yourself.
• High-return wealth-building: with expensive contribution guarantees gone, the allowances and your contributions flow directly into higher-yielding securities.

To work out the exact subsidy amount for your specific family situation, you can use our interactive subsidy calculator. If you're unsure how best to split the allowances, or whether switching from an old Riester-Rente contract makes sense, we're happy to put you in touch with a competent partner for personal financial advice. Please note: all calculations and worked examples are for illustration only and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The subsidy logic in detail: how the Grundzulage and Kinderzulage are made up

For families with children, the Altersvorsorgedepot generally pays off significantly from 2027, because the state allowances for parents and children combine so well. Alongside two Grundzulagen for both partners, an additional Kinderzulage flows directly into the account for every child entitled to Kindergeld. Splitting your own contributions cleverly can therefore maximise the state subsidy rate. On the first 360 euros you pay in yourself, the state grants an allowance of 50 cents per euro under the basic subsidy, and 25 cents per euro above that^[1]. The maximum annual Grundzulage is 540 euros per person, fully reached with an own contribution of 1,800 euros^[1].

On top of this Grundzulage, parents also benefit from the reformed Kinderzulage. For every child entitled to Kindergeld, the state pays an annual allowance of up to 300 euros^[1]. The allowance matches your own contribution one to one; 300 euros of own contribution a year secures the full amount, while a general annual minimum own contribution of 120 euros per contract applies. This small own share gives families with several children a particularly good ratio between their own savings effort and state support.

If both partners save into their own contract and split the contributions wisely, the family subsidy can be used to its full potential. To check your individual entitlements precisely and calculate the optimal split, you can use the subsidy calculator on our portal. Please note that all calculations are purely illustrative and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The lever for parents: how the Kinderzulage multiplies the subsidy rate

For families with children, the Altersvorsorgedepot proves to be one of the most lucrative instruments for private pension provision once it launches in 2027. The main driver of this high appeal is the state Kinderzulage, which is directly tied to receiving Kindergeld^[1]. For every child entitled to Kindergeld, one parent receives an allowance of 100 percent on their own contribution, capped at a maximum of 300 euros per year per child. Because this subsidy is paid on top of the regular Grundzulage, the effective subsidy rate multiplies rapidly compared with savers without children. If both partners save into their own account, the various state contributions in the household can be pooled optimally and used for long-term wealth-building.

This worked example shows impressively how heavily the state subsidises parents' private pension provision^[2]. To receive the full Kinderzulage of 300 euros for one child, you only need to make an own contribution of 300 euros a year - equivalent to just 25 euros a month. An annual minimum contribution of 120 euros is generally required to be eligible for the allowances at all. To tailor the state subsidy perfectly to your personal family situation, it's worth splitting the contracts precisely between the partners. With the subsidy calculator, you can work out the optimal savings rates for your household with ease. For more in-depth details on the legal framework, our knowledge section is also available. Note: these worked examples are for illustration only and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Strategic splitting between both partners: making the most of the family subsidy

For families with children, the new Altersvorsorgedepot represents one of the most attractive ways to build state-subsidised pension provision. To get the maximum out of the subsidy, though, partners should approach it strategically. The key is not to save into just a single contract, but to set up a separate account for each partner. This doubles your entitlement to the state Grundzulage from up to 540 euros per person to a combined total of up to 1,080 euros a year^[1]. Because married couples remain eligible for subsidy even when only one partner is directly entitled, this model can be applied in almost any household constellation.

Allocating the Kinderzulage of up to 300 euros per child also takes planning. By default, the Kinderzulage is assigned to the mother, but it can be transferred to the father on a joint application. This makes particular sense when contributions need to be split optimally for tax purposes, to balance the subsidy rate on both sides. To work out the individual amounts and rates, it's worth using digital tools such as the subsidy calculator.

• Take out separate contracts: both partners hold their own account, to each secure the full Grundzulage of up to 540 euros.
• Assign the Kinderzulage strategically: the allowance of up to 300 euros per child flows to the mother by default, but can be transferred to the father to optimise the subsidy rate.
• Watch the minimum contribution: to be eligible for the allowances at all, each contract holder must pay an annual minimum contribution of 120 euros.

This structured splitting of contracts, combined with targeted allocation of the allowances, can substantially increase the state subsidy rate, especially where there are several children. If you're unsure what the optimal split looks like for your specific family situation, our independent advice service is a good way to work out a tailored strategy with an expert.

Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. All calculations and figures given are for illustration only.

A worked example: what the state allowance adds up to over the long term

If you use an Altersvorsorgedepot as a family with children, the state allowances build substantial leverage over the decades. The reason is the compounding effect, which works not just on your own contributions but also on the capital the state adds. The new subsidy structure provides that the state contributes one euro for every euro you pay in, up to a maximum of 300 euros per child. These allowances flow directly into the account and are invested for high returns, so your accumulated wealth can grow markedly faster over the long term than with an unsubsidised investment^[3].

Comparison: one child versus two children

The comparison shows just how significantly an additional child affects the total subsidy. Thanks to compounding, the extra wealth growth from the second child is up to 18,000 euros higher after 30 years, at an assumed average return of six percent, than in the model with just one child. To forecast this dynamic precisely for your own family situation, it's worth using digital simulations. With the subsidy calculator, you can run through different scenarios, optimise the split of contributions, and compare the long-term effect transparently.

Please note that all worked examples and models are mathematical simulations for illustration only. Actual performance depends on the securities chosen and future market conditions. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The transition from Riester to the Altersvorsorgedepot: when switching pays off for families

For families with an existing Riester-Rente contract, switching to the new Altersvorsorgedepot pays off in most cases from as early as the reform's first year. Thanks to full grandfathering, you keep every allowance and tax benefit accumulated so far in full, while your capital in the account can be invested far more flexibly and profitably. Because switching costs are legally capped at a maximum of 150 euros^[1], this step often pays for itself extremely quickly through the better return potential of an ETF portfolio.

The most important criteria for deciding whether to switch

• Grandfathering of the allowances: all state Riester allowances received in the past, along with your own payments, remain fully protected when transferred properly.
• Cap on switching costs: for the first five years, your previous provider may charge a switching fee of no more than 150 euros to transfer the capital into the new account; after that, switching is generally free of charge.
• Greater dynamism: while classic Riester-Rente contracts, held back by the contribution guarantee, often generate only low returns, your contributions in the account flow directly into high-return ETFs, which optimises the compounding effect on your Kinderzulagen.

To check from which year switching would pay off in your individual case, you can use the built-in Riester-switch module in our subsidy calculator. This kind of comparison works out the precise financial difference and shows the exact break-even age for your family. If you'd like more detailed information, our knowledge section offers in-depth analysis of the legal rules. If you're unsure whether your current Riester-Rente contract is transferable, our independent advice service is happy to put you in touch with certified experts for personal advice. (Note: all calculations are illustrative. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

Two paths to the goal: when to invest yourself and when to get advice

The state subsidy for the new Altersvorsorgedepot offers considerable potential, especially for families with children. Combining two personal Grundzulagen with the respective Kinderzulagen can achieve an above-average subsidy rate. To make the most of this subsidy, you have two equally valid implementation paths available. Whether you take charge of your pension provision yourself or prefer professional support depends entirely on your personal expertise and preferences. The Federal Ministry of Finance (BMF) confirms that the new state subsidy is deliberately designed to make private pension provision more profitable and more transparent^[1].

The path for DIY savers: digital account management

If you're already well-versed in financial matters, like acting independently, and want to keep full control over your investments, managing your own account is ideal. In this case, you can set up the Altersvorsorgedepot directly with a modern provider or neobroker and choose your ETFs yourself. Our provider comparison helps you compare the different offers transparently, so you can find the right account with low fees. Our knowledge section also has all the essential background you need to make well-founded decisions.

The advised path: structured planning for families

For many families, pension provision is a complex topic, because allowances need to be split optimally between the partners. If you want personal advice and would like to plan your family's provision in a structured way, our independent advice service is the right choice. A licensed expert helps you work out the optimal split of contributions and make full use of the tax benefits. Use the interactive subsidy calculator in advance for initial orientation (an illustrative worked example, not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

The first step: how to prepare your family for the launch of the Altersvorsorgedepot

The official launch of the new Altersvorsorgedepot on 1 January 2027 is drawing closer. For families with children, the reform offers one of the most attractive ways to build subsidised private pension provision there is^[1]. Combining two personal Grundzulagen of up to 540 euros each with additional Kinderzulagen of up to 300 euros per child can achieve an extremely high state subsidy rate. To make the most of this financial support from day one and split contributions wisely between both partners, you should use the time remaining before launch strategically.

Structured preparation protects you from rushed decisions just before the year-end changeover. Key tasks include taking stock of existing Riester-Rente contracts and clarifying your individual entitlements. The new Kinderzulage is directly tied to having an entitlement to Kindergeld^[1]. A complete record of the Kindergeld received is therefore the basic formal requirement for applying for the allowances correctly later on. To work out your individual savings rates and the exact subsidy rate, it's worth using digital tools. With the subsidy calculator, you can simulate different contribution splits between the partners and calculate the maximum state support for your household budget.

1. Check your Kindergeld records: make sure that receipt of Kindergeld is officially registered and documented for every eligible child.
2. Work out your savings budget: analyse your monthly family budget to set the optimal own contributions for both partners.
3. Evaluate legacy contracts: check existing Riester-Rente contracts for profitability and clarify the switching terms to the new Altersvorsorgedepot.
4. Run the numbers: use the subsidy calculator to work out the optimal split of contributions mathematically.

For detailed information on the legal framework and the tax rules, our knowledge section is available to you. If you're unsure about splitting the savings rates, or want to transfer complex legacy Riester-Rente contracts, personal advice can also be worthwhile to avoid transfer errors. Please note: all calculations and models shown are for demonstration purposes only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.