Are self-employed people eligible for Altersvorsorgedepot subsidies?
Published on · Updated on · Managing Director & Partner, Alsterspree Verlag GmbH
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The direct answer: are self-employed people eligible for Altersvorsorgedepot subsidies?
Yes, once the Altersvorsorgedepot launches in 2027, every self-employed person will be unrestrictedly eligible for state subsidies[1]. That applies regardless of whether you are subject to compulsory statutory pension insurance. This new rule removes a historic hurdle for around four million freelancers and sole traders in Germany, who were largely excluded from the old Riester system.
Until now, only self-employed people subject to compulsory pension insurance were allowed to receive state Riester allowances. Anyone who saved privately and didn't pay into the statutory fund — like the large majority of freelancers and sole traders — came away empty-handed. From 2027, this principle of tight coupling to compulsory statutory pension insurance is dropped entirely. Our knowledge section offers you in-depth analysis and the legal background to the reform. For self-employed people, this means a historic levelling of the playing field in private pension provision, making wealth-building with low-cost ETFs extremely attractive.
Going forward, eligibility extends to every form of self-employed activity. Whether you run a main or side business, work as a freelance journalist or freelance engineer, or are compulsorily insured through a professional pension scheme (Versorgungswerk): the state allowance subsidy and the tax benefits are unrestrictedly open to you. The overview below sets out the system switch in direct comparison with the previous Riester model.
| Self-employment status | Old Riester subsidy | New Altersvorsorgedepot (from 2027) |
|---|---|---|
| Subject to compulsory statutory pension insurance | Eligible | Eligible |
| Not subject to compulsory insurance (sole traders, freelance professions) | Not eligible | Eligible |
| Members of professional pension schemes (e.g. doctors, lawyers) | Not eligible | Eligible |
This legal expansion gives you full access to the annual basic allowance of up to 540 euros, plus additional child allowances of up to 300 euros per child. The capital you save can be invested flexibly in equity ETFs, which significantly improves the return potential compared with classic insurance products. To work out your individual subsidy amount and the optimal own contribution precisely, our free subsidy calculator is available to you. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.
The system switch: why the Altersvorsorgedepot tears down the Riester hurdle for the self-employed
Until now, self-employed people in Germany have mostly found closed doors when it comes to state-subsidised private pension provision. The Riester-Rente systematically excluded self-employed people not subject to compulsory pension insurance. As a result, around 4 million freelancers and sole traders had no direct access to state allowances or tax benefits. The new Altersvorsorgedepot, launching on 1 January 2027, finally tears down that hurdle. With the Altersvorsorgereformgesetz (the pension reform act), lawmakers are fundamentally opening the state subsidy system to every self-employed person. Eligibility is thereby made completely independent of compulsory statutory pension insurance[1].
This reform marks a historic turning point. In the old Riester world, freelancers or tradespeople had to either be subject to compulsory insurance or have a directly eligible spouse in order to benefit indirectly. From 2027, every self-employed person gets direct, independent eligibility. You'll find comprehensive detail on the new legal basis and the exact requirements in our knowledge section. That clears the way for state allowances and tax-reducing Sonderausgabenabzug deductions as part of a modern, equity-based pension plan.
| Type of self-employment | Riester system | Altersvorsorgedepot (from 2027) |
|---|---|---|
| Self-employed people not subject to compulsory pension insurance (e.g. many freelancers, sole traders) | Not eligible (only indirectly, via a spouse) | Directly eligible |
| Self-employed people subject to compulsory pension insurance (e.g. midwives, registered tradespeople, artists via the KSK) | Directly eligible | Directly eligible |
To receive the full state subsidy, you simply need to pay the statutory minimum own contribution into your account. You can easily work out for yourself, with the subsidy calculator, how strongly the allowances and tax benefits affect your final capital compared with an unsubsidised ETF savings plan[1]. This reform lets you build your pension provision flexibly and for higher returns, with state support, for the first time.
The overview: which types of self-employment are eligible from 2027?
With the introduction of the new Altersvorsorgedepot in 2027, lawmakers are carrying out a historic reversal in subsidised private pension provision. Until now, self-employed people not subject to compulsory pension insurance were almost entirely excluded from state allowances and tax benefits under the old Riester system, unless they had indirect eligibility through a spouse. The Bundestag's decision breaks with that rigid hurdle and opens the subsidised Altersvorsorgedepot unrestrictedly to every self-employed person[2]. On our knowledge section, we track this reform with neutral, source-based guidance.
| Type of self-employment | Eligible from 2027? | Requirements / details |
|---|---|---|
| Freelancers (e.g. doctors, IT consultants, journalists) | Yes, fully eligible | Eligibility for allowances applies even without compulsory statutory pension insurance. |
| Sole traders (self-employed businesspeople and tradespeople) | Yes, fully eligible | Get direct access to the state allowances and the Sonderausgabenabzug. |
| Managing shareholders (e.g. of a GmbH) | Yes, fully eligible | Eligibility is guaranteed whether they're exempt from social insurance or subject to compulsory insurance. |
| Self-employed people subject to compulsory pension insurance | Yes, fully eligible | Eligible as before, but now benefit from the new, higher-return account variant. |
This reform means that, from 2027, you as a self-employed person can finally claim the same state subsidies as employees. To receive the maximum subsidy — the new percentage-based basic allowance plus any child allowances — you simply need to pay the statutory minimum own contribution into your account[1]. You can easily work out how much that own contribution comes to in your personal situation, and what subsidy return results from it, with the subsidy calculator. Please note the legal disclaimer: these calculations are for illustrative purposes only and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.
Allowances and tax benefits: how the state subsidy actually works
From 2027, self-employed people are unrestrictedly eligible for subsidies under the new Altersvorsorgedepot. That applies explicitly to self-employed people and freelancers not subject to compulsory pension insurance too, marking a historic opening of the state-subsidised system compared with the old Riester-Rente. While the Riester model largely excluded this group unless there was indirect eligibility via a spouse, the new account is now open to everyone. To receive the state allowances, you simply need to pay a minimum own contribution of 120 euros a year. The maximum subsidised own contribution is 1,800 euros a year, at which you can draw the full state subsidy[3].
| Type of self-employment | Subsidy under Riester | Subsidy under the Altersvorsorgedepot |
|---|---|---|
| Subject to compulsory pension insurance (e.g. tradespeople, artists) | Yes (directly eligible) | Yes (fully eligible) |
| Not subject to compulsory pension insurance (liberal professions, many trades) | No (only indirectly, via a spouse) | Yes (fully eligible from 2027) |
The subsidy system combines direct allowances with tax relief through the Sonderausgabenabzug. The state pays an annual basic allowance of up to 540 euros directly into your account, if you make the maximum own contribution of 1,800 euros[3]. This subsidy is made up of two tiers that effectively top up what you pay in. To find out how your savings rate and the state allowances affect your future wealth, we recommend our interactive subsidy calculator. With this tool, you can easily simulate your personal savings path digitally and compare it with unsubsidised forms of saving.
As a neutral guide, we accompany you on your path to the right pension provision. All the worked examples shown in our articles and tools are illustrative and do not constitute investment advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG). For deeper questions and a plan tailored to your personal situation, we're happy to connect you, via our independent advice service, with licensed, independent experts for a personal conversation. Additional guides and structured background reporting on optimal ETF investing are available in our knowledge section.
Flexibility with fluctuating income: adjusting contributions dynamically
From 2027, self-employed people benefit under the new Altersvorsorgedepot from a highly flexible contribution structure that adapts perfectly to fluctuating or irregular income. Unlike the rigid Riester world, which shut out many self-employed people entirely, the new system marks a historic opening for freelancers and sole traders. You can vary your savings rate year by year, raise it in strong-revenue periods, or pause it temporarily during financial squeezes, without losing state allowances you have already earned[1]. This flexibility ensures your pension provision always breathes in step with your business's economic reality.
Managing your contribution level flexibly and securing the subsidy
To receive the full state subsidy, you need to pay the statutory minimum own contribution. If your profit and income change, you can adjust your savings contributions without difficulty. If you're able to pay in less in a given year, that doesn't cause you to lose the returns or allowances you have already earned. You can easily simulate the exact effect of changed savings rates on your future capital with the subsidy calculator. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. You'll also find supplementary explanations of the legal basis directly in the Altersvorsorgedepot guides on the Vorsorgedepot-Lotse portal.
- Increasing contributions: in strong-revenue years, you can raise your payments up to the maximum subsidised amount, to benefit from the maximum tax advantages.
- Reducing or pausing contributions: in phases of unsteady revenue, you can reduce your savings contribution or suspend it entirely, without having to repay state allowances you've already received.
- Securing the allowance: the state allowance is calculated for the relevant contribution year, so you receive the corresponding subsidy even with irregular payments.
Tax treatment in detail: the savings phase and deferred taxation
The Altersvorsorgereformgesetz sets out a tax structure for the new Altersvorsorgedepot that offers substantial advantages, particularly for self-employed people and freelancers. During the active savings phase, every gain, dividend and interest return inside the account remains completely tax-free[4]. So there's no annual taxation of advance lump sums or distributions. You can also claim your contributions as special expenses (Sonderausgaben) for tax purposes, within the statutory maximum amounts, which noticeably lowers your current tax burden in high-income years. You can calculate this tax relief precisely for your personal situation with our subsidy calculator.
Deferred taxation: the advantage in retirement
The principle of deferred taxation only kicks in during the payout phase in retirement. That means payouts are taxed at your personal income tax rate at that point. Because most self-employed people's personal tax rate in retirement is significantly lower than during their active working years, this creates a substantial tax lever. Unlike the old Riester-Rente, this subsidy is now unrestrictedly accessible to self-employed people not subject to compulsory pension insurance too, marking a historic opening of the state subsidy system. We keep you continually informed of the exact legal detail and how this law is implemented in our knowledge section.
| Phase | Rule in the Altersvorsorgedepot | Advantage for the self-employed |
|---|---|---|
| Contribution phase | Deductible as special expenses, within the maximum limits | Immediate tax savings in high-profit business years |
| During the term (account gains) | Full tax exemption on dividends and gains | Maximum compound-interest effect, with no annual deduction of capital gains tax |
| Payout phase | Deferred taxation of the capital paid out | Benefiting from the usually much lower personal tax rate in retirement |
Please note that these calculations and tax mechanisms are based on the enacted Altersvorsorgereformgesetz (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG). Because the optimal tax structuring for self-employed people depends heavily on how their individual profits develop, well-founded planning is advisable. We support you in this by connecting you not only with our digital tools but also directly with independent experts. Use our independent advice service to plan your transition into the new system optimally.
Self-directed or advised: finding the right route to your account
The introduction of the Altersvorsorgedepot on 1 January 2027 marks a historic turning point for self-employed people. While the old Riester system generally excluded freelancers and sole traders not subject to compulsory pension insurance from state subsidies, the new model opens the allowances and tax benefits unrestrictedly to this entire group. This fundamental reform lets you, for the first time, build a state-subsidised private pension flexibly through a securities account. The federal government is thereby creating an important pillar for taking responsibility for your own provision outside the statutory pension fund[5].
Because the financial situation of self-employed people is often shaped by fluctuating income and complex tax circumstances, how you structure your pension provision needs to fit you individually. For the practical implementation of this new subsidy route, two entirely equal options are available to you on our portal. We believe in the complete equal standing of self-directed digital management and professional guidance, when it comes to making the best decision for your personal situation.
| Decision path | Self-directed | Seeking advice |
|---|---|---|
| Main focus | Independent action and direct cost control | Tailor-made structuring by experts |
| Recommended tool | Provider comparison for neobroker plans | Independent advice service for personal conversations |
| Flexibility | Full control over the ETF selection in the account | Optimal alignment with your tax situation |
To get an initial overview of the potential subsidy effects, you can calculate your future allowances directly with the subsidy calculator. If you'd rather take your pension provision entirely into your own hands, the provider comparison tool helps you open a suitable account. If, instead, you'd like personal support and want detailed questions about tax deductibility answered, our independent advice service takes you directly to licensed experts. Whichever route you choose, the knowledge section always offers neutral, fact-based, up-to-date guidance.
Step-by-step roadmap: how self-employed people can prepare for the 2027 launch
The historic opening of the state subsidy system under the pension reform means that, from 1 January 2027, self-employed people not subject to compulsory pension insurance can benefit from state allowances and tax advantages too. In stark contrast to the old Riester world, which consistently excluded freelancers and sole traders without compulsory statutory insurance, the new Altersvorsorgedepot offers a flexible, higher-return alternative[1]. To make the most of this opportunity, you should use the remaining time before the reform in a structured way.
- Review your existing pension contracts: check your current private pension policies or Basisrenten (Rürup pensions). While Rürup pensions are often tax-advantageous, they lack the flexibility of a genuine account. Whether to switch, or to save into the new model as well, should be checked mathematically.
- Set your savings-rate budget: because self-employed income often fluctuates, forward-looking budget planning is essential. Plan your monthly or annual savings rate early, to secure the maximum subsidy entitlement from day one of 2027.
- Compare offers and get advice: use neutral sources such as the knowledge section to understand the tax aspects of the reform in detail. Well-founded planning ensures you align the state allowances optimally with your individual tax situation.
A well-thought-out roadmap protects you from rushed decisions shortly before the launch date. The Bundesfinanzministerium (Federal Ministry of Finance, BMF) stresses that timely preparation smooths the transition into the subsidised account world[1]. With our subsidy calculator tool, you can work out your optimal own contribution in just a few clicks and lay the financial-mathematics foundation for your private pension provision from 2027.
Häufig gestellte Fragen
- Are self-employed people eligible for Altersvorsorgedepot subsidies from 2027?
- Yes, from the launch year of 2027, every self-employed person and freelancer in Germany is eligible for subsidies under the Altersvorsorgedepot (AVD). Unlike with the Riester-Rente, you don't need to be subject to compulsory statutory pension insurance for this. This new rule opens the state-subsidised system for the first time to around 4 million self-employed people who were previously largely excluded from such allowances.
- What is the minimum contribution for self-employed people under the Altersvorsorgedepot?
- To receive the state subsidy for the Altersvorsorgedepot, you need to pay a minimum own contribution of 120 euros a year. This low baseline amount secures the basic allowance for you and makes the model especially attractive for founders or self-employed people in their early phase, who can initially only afford small monthly savings rates.
- What is the maximum subsidy under the Altersvorsorgedepot for self-employed people?
- The maximum subsidised own contribution is 1,800 euros a year. Up to that amount, the state supports what you pay in with allowances and tax relief. Contributions above that are also possible, but are no longer directly subsidised by the state.
- Can I adjust my contributions to my irregular income?
- Yes, the Altersvorsorgedepot offers self-employed people maximum flexibility. You can adjust or increase your savings rate at any time, or pause it temporarily during financial squeezes. As long as you pay the minimum contribution of 120 euros a year, your entitlement to the basic subsidy remains intact. That makes the AVD ideal for irregular income patterns.
- What happens to an existing Rürup pension when the Altersvorsorgedepot launches?
- Existing Rürup contracts (Basisrente) are unaffected by the reform and continue to run. A direct, tax-free switch of saved Rürup capital into a new Altersvorsorgedepot is not provided for under the enacted law. From 2027, however, you can build up the AVD as a highly flexible, state-subsidised addition alongside your existing Basisrente.
Sources
The AVD as retirement provision for the self-employed
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