Does the Altersvorsorgedepot pay off for low earners?

Tilman Freyenhagen

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

The new Altersvorsorgedepot 2027: a retirement savings revolution for low earners

Does the new Altersvorsorgedepot pay off for people on a low income? The short answer is: yes, and it can pay off particularly well for low earners once the new Altersvorsorgedepot launches in January 2027. Because the state Grundzulage and the Kinderzulagen are defined as fixed euro amounts, they make up an unusually large share of total contributions when your own savings rate is small. That produces an above-average state subsidy rate, which noticeably speeds up long-term wealth accumulation.

With this reform of private retirement savings, the federal government is replacing the old, often low-return and expensive insurance products, and enabling state-subsidised wealth accumulation directly in low-cost capital-market accounts, for example through equity ETFs. Anyone who has previously shied away from private retirement savings because of high set-up fees and low interest rates now gets transparent access to the capital markets. The Bundesministerium für Finanzen (Federal Ministry of Finance) explicitly stresses that the new model is open to all income groups and creates targeted incentives for savers who can only set aside small amounts each month^[1].

• Grundzulage: a state contribution of 50 percent up to 360 euros, plus a further 25 percent up to 1,800 euros of your own contribution, equating to a maximum annual Grundzulage of up to 540 euros.
• Kinderzulage: an additional state subsidy of up to 300 euros per child per year, paid at a 1:1 ratio to your own contributions.
• Minimum contribution: a base amount of just 120 euros a year is already enough to secure entitlement to the full state allowance subsidy.
• Berufseinsteiger-Bonus: a one-off 200 euros for savers under 25 at the start of their savings.

To work out the concrete effect of this allowance structure on your own savings rate, our free subsidy calculator is available to you. It calculates your optimal own contribution and shows how strongly the state contribution lifts your personal subsidy rate. You will find further mathematical detail and legal background on the reform in our comprehensive Altersvorsorgedepot guides.

Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The new subsidy system: how the state allowances work from 2027

The new Altersvorsorgedepot offers, from 2027, a transparent state subsidy directly tied to your own contributions. The federal government is moving here decisively away from the often complicated calculations of the Riester-Rente, opting instead for a clearly structured percentage-based subsidy. Every year, the state matches your private contributions up to a ceiling of 1,800 euros, which produces a considerable leverage effect especially for smaller savings rates. To make this dynamic tangible for your own situation and calculate your personal subsidy rate exactly, we provide the subsidy calculator on our portal.

The new subsidy system is split into two tiers. For the first 360 euros you pay into your account in the calendar year, you receive a state allowance of 50 percent - a contribution of up to 180 euros for an own savings effort of just 30 euros a month. For every further euro you pay in, the state grants a subsidy of 25 percent, until the annual limit of eligible own contributions of 1,800 euros is reached. Anyone who uses this maximum amount in full therefore receives a maximum annual Grundzulage of 540 euros credited directly to their account^[2].

There is, however, an important floor to note: to benefit from these allowances at all, you must pay a statutory minimum contribution of 120 euros a year (equivalent to 10 euros a month). If your annual payments fall below this threshold, the state contribution is lost entirely. Yet even at this minimum contribution, you already secure the state's full 50 percent subsidy lever, since your payment of 120 euros is topped up by 60 euros in state allowance.

This scale shows that low earners with smaller savings rates benefit from an above-average subsidy rate. You will find further analysis and calculations for different income groups in our knowledge section, which serves as a neutral guide throughout. Please note: the figures shown in the table are for illustration only and do not constitute investment advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

The allowance lever: why small contributions achieve the highest subsidy rate

Does the Altersvorsorgedepot pay off for low earners? The clear answer is: yes, and the financial advantage is disproportionately high precisely at a low income. That's down to the state allowance model taking effect from 2027. Because the state pays fixed allowances, smaller savings contributions achieve the highest subsidy rate in proportion to your own savings. Even the statutory base minimum contribution of 120 euros a year already secures you state support, provided you belong to the group eligible for the subsidy.

The mathematical logic behind this is simple: for the first 360 euros of your annual own contribution, you receive a state Grundzulage of 50 percent, which comes to exactly 180 euros^[3]. For every further euro up to the maximum subsidised sum of 1,800 euros, you receive an allowance of 25 percent. Anyone who saves exactly 360 euros a year from their own pocket receives 180 euros from the state on top and secures a subsidy rate of a full 50 percent. If you have children, this lever increases dramatically again through the Kinderzulage of up to 300 euros per child.

These example figures show that your percentage subsidy rate falls the more you pay in yourself - even though the absolute allowance amount naturally rises. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. With the digital subsidy calculator you can work out your personal subsidy rate exactly for your own situation. If you would like personal support with your retirement savings decision, our independent advice service helps you get in touch, free of charge, with a qualified, independent expert.

The entry threshold: how to activate the subsidy with a 120-euro minimum contribution

To receive the state allowances for the new Altersvorsorgedepot from 2027, you must pay a statutory minimum contribution of 120 euros a year yourself, equivalent to just 10 euros a month^[1]. Fall short of this amount and entitlement to the state subsidy is lost entirely. For savers on a low income in particular, this low base amount is nonetheless an extremely attractive entry threshold, since it opens the way to above-average state subsidy rates.

At an annual own contribution of exactly 120 euros, the new percentage-based basic subsidy of 50 percent applies, equating to a standard Grundzulage of 60 euros. The enacted legislation does not provide for an additional income-dependent low-earner bonus; the high subsidy rate comes purely from the percentage-based allowance.^[7] In total, with an own contribution of just 120 euros, 180 euros flow directly into your account - a subsidy rate of 50 percent. With our subsidy calculator you can work out this leverage effect individually for your own situation.

Note: this example calculation is for illustration purposes only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. So that this substantial subsidy lever isn't eroded by unnecessary account fees, choosing a very low-cost provider is essential. Our Altersvorsorgedepot guides explain in detail how different fee structures affect your return over the long term.

An extra family boost: the reformed Kinderzulage for low earners

For low earners with children, the new Altersvorsorgedepot holds a particularly powerful lever from 2027. As part of the reform, the state Kinderzulage is fundamentally simplified and tied directly to your own savings effort. For every euro you pay into your Altersvorsorgedepot yourself, the state adds a further euro as Kinderzulage - up to a maximum of 300 euros per child per year^[1]. This one-to-one subsidy means that with a monthly own contribution of the equivalent of just 25 euros per child, you can already activate the maximum state support.

Maximum leverage with no extra financial burden

This rule has an especially powerful effect for people on a lower income. Because the Kinderzulage is a fixed amount, it produces an above-average subsidy rate relative to your small own contributions. You don't need to raise large sums to dramatically increase your retirement savings. If, for example, you have two children and use the full annual own contribution eligible for the Kinderzulage, an extra 600 euros a year flows straight from the state into your high-return ETFs or funds. To work out the exact effect for your own situation, our neutral subsidy calculator is available to you.

Thanks to this structure, your account grows primarily through state contributions, while your own budget is spared. Please note: the calculations and figures shown here are for illustration only and do not constitute investment advice within the meaning of the Kreditwesengesetz (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG). You will find further detailed explanations of how the reform works in our comprehensive knowledge section.

A concrete model calculation: the mathematical leverage in detail

To illustrate the financial advantage for households on a lower income, it's worth looking at the actual figures. Anyone on a low income can often only set aside small sums for private retirement savings - and this is exactly where the high state subsidy rate comes in. If you pay in the statutory minimum contribution of 120 euros a year, you already receive a state Grundzulage of 50 percent on that amount, or 60 euros on top. With our subsidy calculator you can run through scenarios like this precisely for your own situation as well.

This model calculation illustrates the above-average leverage effect at smaller contributions. While higher earners need to pay an annual own contribution of 1,800 euros to reach the maximum Grundzulage of 540 euros, low earners already achieve a subsidy rate of 50 percent with the minimum contribution^[5]. The lever is even clearer for families: the additional Kinderzulage of up to 300 euros per child multiplies the invested capital without placing an excessive burden on your own budget. Over a term of several decades, this state-subsidised starting capital develops considerable momentum in the equity markets through the compound-interest effect. A low-cost provider is essential here, so that these return advantages aren't eroded by unnecessary account fees.

Important note: the calculations and scenarios shown here are for general information and illustration of the statutory subsidy structure only. They do not constitute investment advice within the meaning of Paragraph 1 Absatz 1a Nummer 1a KWG (source: justetf.com). For a detailed assessment of your personal situation, we recommend using specialised information portals or seeking individual advice.

Minimising costs: why low earners need to watch for low-cost accounts

The state subsidy for the new Altersvorsorgedepot has an especially powerful leverage effect for small incomes, but this advantage can quickly be lost to high provider fees. Because low earners tend to pay in lower absolute savings rates, percentage-based costs or fixed account fees weigh proportionally far more heavily on the final capital than they do for large investors. A conscious comparison of account costs is therefore essential, to make full use of the state allowance lever for long-term wealth accumulation.

The legislature has set a cost cap of 1.0 percent per year as a benchmark for standardised retirement savings products, as part of the approval process for the standard product. This figure serves as an important safeguard against overpriced offers, of the kind often seen with classic Riester pension insurance policies^[2]. Even so, you should not rely on this cap alone, since neobrokers and modern ETF providers often undercut this mark significantly in their regular account business. Every tenth of a percentage point you save in annual management or account fees flows directly into your compound-interest effect over the decades.

The example above clearly shows that seemingly small differences in fees can add up to several thousand euros of difference over a typical 30-year accumulation phase (illustrative model calculation at a monthly savings rate of 50 euros and an assumed gross return of 5 percent; not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG). To calculate your personal subsidy rate and the precise impact of provider fees on your own situation, transparently, the subsidy calculator is available to you free of charge.

For low earners, the basic rule is therefore to consistently choose low ongoing costs when selecting a provider, and to favour standardised ETF portfolios. Our knowledge section offers comprehensive, source-based analysis to help you make a well-founded decision for your private retirement savings.

The path to a decision: digital self-direction or personal advice

The introduction of the new Altersvorsorgedepot from 2027 raises fundamental questions for savers. The Bundesministerium der Finanzen stresses that the reform of private retirement savings is meant to enable transparent, simple and low-cost products^[6]. On our Vorsorgedepot-Lotse platform, we help you choose the optimal path for your financial future. Because every euro invested has to count especially for those on a smaller income, we offer you two equally sound and neutral routes to make the best use of the state subsidy.

The two routes at a glance

• The digital self-directed path: if you enjoy managing your finances independently and acting directly online, use the knowledge section for in-depth analysis. In our guides you'll find reliable expert articles. With the subsidy calculator tool you can work out your personal subsidy exactly, then use our provider comparison tool to find a suitable, low-cost neobroker or account provider.
• The personal advice path: if you want maximum security, or your case is more complex due to existing old contracts, our independent advice service can help. Through this free service, we connect you to an advice session with licensed, independent financial advisers who personally guide you through every step.

Which path is right for you depends on your prior knowledge and your personal need for security. Low earners benefit from a particularly high subsidy rate relative to their own contributions, thanks to the fixed Grundzulage and Kinderzulage. Use our interactive subsidy calculator in advance to work out your exact entitlements transparently and without any sales pressure. That way you can make a well-founded decision, whether for self-directed saving or professionally guided retirement provision.