Should you still pay into your Riester-Rente in 2026?

Tilman Freyenhagen

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

Status quo 2026: what applies to existing Riester-Rente contracts before the reform starts?

For contribution year 2026, existing Riester-Rente contracts remain fully subject to the previous legal and tax rules. The right to Bestandsschutz established by the Altersvorsorgereformgesetz (AVRG, the pension reform act) guarantees that contracts concluded before 1 January 2027 can be continued in full and still receive state support. Anyone who keeps making regular payments in 2026 therefore continues to benefit from the usual allowances and tax advantages for the current year. A continued Riester-Rente secures all entitlements for the transition period, while the actual switch to the new Altersvorsorgedepot only becomes relevant once the new rules start in 2027.

• Grundzulage (basic state allowance): anyone directly entitled to the subsidy secures an annual Grundzulage of 175 euros once they reach their individual minimum own contribution.
• Kinderzulage (child allowance): for every child for which Kindergeld is payable, an additional 185 euros (born before 2008) or 300 euros (born from 2008) flows into the contract account as direct support, depending on the child's year of birth.
• Sonderausgabenabzug (deduction as a special expense): the own contributions paid, plus the state allowances, are tax-deductible in the income tax return up to the statutory maximum of 2,100 euros.
• Statutory Bestandsschutz: the capital built up and the contribution guarantees on contracts from before 2027 remain legally protected in their existing form.

The 2026 transition phase opens a clear strategic bridge to the change of system. Anyone who still takes the full state subsidy in the year before the reform suffers no financial disadvantage from switching later. All Riester allowances earned in 2026 remain fully intact when properly transferred to the Altersvorsorgedepot from 2027. Continuing to pay in during the transition year avoids gaps in provision and, at the same time, buys the time needed to assess the terms of new retirement products neutrally once they reach the market.

The 2026 subsidy logic: making full use of allowances and tax benefits

In contribution year 2026, you can draw on the full Riester subsidy - Grundzulage, Kinderzulage and the Sonderausgabenabzug - one last time in full under the current rules, before the new Altersvorsorgedepot launches in 2027. Paying in during 2026 in no way rules out switching later, from 2027, and leaves the capital built up, including the state bonuses, untouched. To secure the full allowances, you need to pay exactly 4 percent of the previous year's income subject to statutory pension insurance, less the allowances, as your minimum own contribution.

Calculating allowances and the Sonderausgabenabzug

• Grundzulage: 175 euros a year per person entitled to the subsidy.
• Kinderzulage: 300 euros a year for children born from 2008, and 185 euros for children born before 2008.
• Sonderausgabenabzug: you can claim up to 2,100 euros in total expenditure (own contribution plus allowances) in your 2026 income tax return. The tax office checks, via a Günstigerprüfung (favourability check), whether the tax saving exceeds the value of the allowances.
• Minimum own contribution: based on 4 percent of gross income for 2025. The base contribution is at least 60 euros a year.

Anyone who consistently pays into their Riester-Rente in 2026 secures the maximum tax saving and puts the contract capital in the best possible position. Should you aim to switch to the new Altersvorsorgedepot from 2027, the allowances received in 2026 remain fully intact within the total capital. You can find detailed information on maximising state bonuses in our guide on getting the maximum subsidy. (Note: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

Securing allowances when you switch: what happens to money paid in during 2026?

Anyone who pays regularly into their Riester-Rente in contribution year 2026 secures the full state allowances and tax advantages for that year, without forfeiting any rights under the later reform. Switching to the Altersvorsorgedepot, available from 2027, does not cause this support to be lost, provided the capital transfer follows the legally regulated switching process. Blanket suspension of contributions in transition year 2026 out of fear of disadvantages is therefore not financially justified.

Bestandsschutz and harmful use at a glance

• Full subsidy retained for 2026: all allowances and tax advantages claimed for contribution year 2026 remain fully intact and stay in the contract balance.
• Secure balance transfer: if you transfer your Riester-Rente directly to an Altersvorsorgedepot in 2027, this legally counts as a regular change of provider. It does not amount to harmful use that would require state subsidies to be repaid.
• No double subsidy on the same contribution: retirement assets already subsidised in 2026 cannot be subsidised again during the transfer process the following year. The transferred capital forms the untouched opening balance in the new account.
• Protection against premature termination on your own initiative: it is important that you never terminate or cancel the contract unilaterally. Only a formal transfer ensures that Riester allowances are retained in full.

By continuing your payments in 2026, you make full use of the maximum amount of up to 2,100 euros, or your individual allowance entitlements, before the change of system. This lets you use the established Riester subsidy right up to the last day of the old rules, while keeping every option open for a seamless start in the Altersvorsorgedepot from 2027.

Application deadlines and formalities: securing your 2026 allowances in time

For the state Grundzulage of 175 euros, as well as any child allowances for contribution year 2026, to reach your account in full, the formal deadlines of the Zentrale Zulagenstelle für Altersvermögen (ZfA, the central pension allowance office) must be met. By law, a two-year application deadline applies to Riester-Rente contracts. For all own contributions paid in calendar year 2026, this deadline runs out on 31 December 2028. Anyone who fails to submit the application by that date irretrievably loses their entitlement to the 2026 state subsidy.

The administratively safest way to keep the deadline is to grant your product provider a Dauerzulagenantrag (standing allowance application). Through this authorisation, the provider automatically applies for the allowances with the ZfA afresh every year, so you do not need to submit a manual application each time. If an active Dauerzulagenantrag is already in place, the 2026 subsidy continues seamlessly without any further action on your part.

• Check the minimum own contribution: to receive the full allowance, you need to pay in 4 percent of the previous year's income subject to statutory pension insurance (less the allowances).
• Account for changes in salary: if your salary or family situation changed during 2025, your monthly contribution for 2026 needs to be adjusted accordingly.
• Deadline 31 December 2028: individual applications for allowances for contribution year 2026 must reach the ZfA by this date at the latest.

Also note that even if you switch to the Altersvorsorgedepot starting in 2027 later on, all allowances applied for in good time for 2026 remain fully intact. We therefore recommend reviewing your 2026 contribution and allowance data early, so you can make up any shortfall before year-end.

Decision guide: for whom is paying in during 2026 especially worthwhile?

Although the new Altersvorsorgedepot is due to launch in 2027, transition year 2026 remains a highly attractive financial opportunity for many savers. Anyone who makes the required minimum own contribution in 2026 secures the full state allowances and tax advantages of the existing Riester system, without jeopardising the later switch to the new system. Groups with a high subsidy rate or specific special bonuses in particular stand to gain significantly from paying in during this last full Riester year.

• Families with children: alongside the Grundzulage of 175 euros, the state pays an additional 300 euros a year for every child born from 2008 (185 euros for children born before 2008). This often produces a subsidy rate on the own contribution of well over 50 percent.
• Career starters under 25: anyone who pays in before turning 25 receives a one-off Berufseinsteiger-Bonus (career-starter bonus) of 200 euros on top of the Grundzulage.
• High earners with a high tax burden: the Sonderausgabenabzug of up to 2,100 euros a year produces a noticeable tax advantage, as the tax office offsets the tax saving directly against the allowances.
• Low earners: even small monthly contributions are enough to trigger the full allowance subsidy, which also produces a mathematically above-average return in 2026.

A sound personal subsidy rate is what matters for a well-founded decision. Anyone who pays in during 2026 has the full allowances for that contribution year credited, even if they switch to the Altersvorsorgedepot in 2027^[4]. To work out the exact subsidy amount for your family situation in advance, so you can make full use of the maximum subsidy, our subsidy calculator for the Altersvorsorgedepot is available to you. Note: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

When does it make sense to suspend or reduce contributions in 2026?

Although the state subsidy is granted in full even in transition year 2026, continuing to pay contributions without restriction is not the economically optimal choice for every saver. Particularly with older, cost-heavy Riester-Rente contracts, ongoing administration costs and high effective costs can largely eat up the state allowances. If you are already planning a systematic switch to the new Altersvorsorgedepot from 2027, it can make sense to let your Riester-Rente lie dormant or temporarily lower your ongoing own contributions. That way you avoid unnecessarily tying up capital in low-return, guaranteed positions shortly before the subsidised investment account launches.

Three scenarios for suspending or reducing payments

• High ongoing contract costs: if the annual effective costs and administration flat fees on your existing contract are close to or above the state Grundzulage of 175 euros, the new own contribution results in a real loss of value without a substantial tax saving to offset it.
• Low allowance effects without a child allowance: if you have no entitlement to the Kinderzulage of 300 euros per child, the percentage subsidy rate drops sharply. In classic insurance-based products, contributions then flow mainly into securing the contribution guarantee rather than into return potential.
• Strategic liquidity planning for the Altersvorsorgedepot in 2027: by suspending contributions in 2026, you keep the liquidity free. From 1 January 2027 you can use these funds specifically to invest with higher savings rates from the outset, in low-cost, chosen ETF portfolios in the new Altersvorsorgedepot.

Important to know: suspending contributions in 2026 affects neither the balance already built up nor your statutory Bestandsschutz. The contract assets accumulated up to that point, together with all allowances received so far, remain protected and available for a later transfer from 2027. We recommend carefully reviewing your contract's individual fee structure before adjusting your standing order for 2026. Note: these model considerations are for general information only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Switching or Bestandsschutz: the decisions you need to make in 2026

Holders of an existing Riester-Rente enjoy comprehensive statutory Bestandsschutz once the reform takes effect on 1 January 2027. This means you are in no way forced to terminate your existing provision hastily, and can instead use 2026 to prepare in the best way. Anyone who continues paying in regularly during transition year 2026 secures the full state allowance subsidy while keeping every option open for a seamless switch to the new Altersvorsorgedepot.

Transparency through § 7d AltZertG and statutory cost caps

Before deciding whether to keep your Riester-Rente or transfer it later, you should carefully analyse the cost structure and contribution guarantee of your existing contract. The legislator prescribes extended disclosure duties under § 7d AltZertG, so savers can compare contract terms and fees transparently. In addition, a statutory cap on switching costs protects your accumulated capital from excessive fee deductions when transferring to an Altersvorsorgedepot^[5].

• Compare guarantees and contract costs: check the level of the guaranteed payout at retirement age and the ongoing administration costs of your existing contract.
• Request disclosure under § 7d AltZertG: use your right to transparent information from your provider regarding the exact switching terms and transfer fees.
• Plan termination and switching deadlines: for a future suspension of contributions or contract transfer at the 2027 cut-off date, formal deadlines by the end of 2026 need to be taken into account.

We recommend keeping up your payments in 2026 so you take the full state allowances and tax advantages with you. Only once concrete product offers are available can our subsidy calculator for the Altersvorsorgedepot, or an advisory session, reliably work out which route offers the higher return in the long run. (Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

Recommended action: the step-by-step plan for your 2026 contribution year

To secure the full state allowances and tax advantages for transition year 2026 without losing room to manoeuvre for the reform from 2027, a structured approach before year-end is advisable. Under the provisions of the Bundesfinanzministerium (Federal Ministry of Finance, BMF), existing contracts enjoy unrestricted Bestandsschutz^[6]. Four concrete steps ensure your balance is subsidised in the best possible way.

1. Check and adjust your own contribution: to receive the full Grundzulage of 175 euros as well as any child allowances, you need to make your individual minimum own contribution. Based on your gross income for 2025, check whether your ongoing annual payments reach the required level, and make up any shortfall with a special payment before 31 December 2026 if needed.
2. Check the Dauerzulagenantrag: check with your provider whether an active one is in place. Make sure all personal details, such as Kindergeld entitlements or salary changes, are correctly recorded there, so the Zentrale Zulagenstelle für Altersvermögen (ZfA) processes the subsidy automatically.
3. Organise your contract documents for 2027: gather the current account statements from your Riester provider. Note the guaranteed capital, allowances accumulated so far and the ongoing administration costs, so you have a transparent basis for comparison from the start of 2027.
4. Get independent advice: evaluate your long-term Riester options neutrally. A structured comparison helps you decide whether continuing the contract, suspending contributions or transferring to the new Altersvorsorgedepot from 2027 fits your life plans.

Preparing for the 2027 market launch

Making your regular payment in contribution year 2026 closes off no future options for you. All allowances and tax reductions for 2026 remain fully intact even if you switch later. Use the remaining months of 2026 to complete your own data. That gives you the ideal basis to choose, without time pressure in 2027, between continuing your existing contract and the new product options.