Should you switch from Riester to the Altersvorsorgedepot?

Tilman Freyenhagen

Published on 14 June 2026 · Updated on 7 August 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

The 2027 Riester reform: what changes for existing contracts?

Whether switching from Riester to the Altersvorsorgedepot is worthwhile depends on three factors: your age, your need for security around the contribution guarantee, and the costs of your existing contract. For younger, return-focused savers with expensive Riester-Rente contracts, there is a lot in favour of it; for those with a short remaining term or a strong preference for security, less often so.

Statutory Bestandsschutz for existing contracts

The most important news first: nobody is forced to cancel their Riester-Rente. Statutory Bestandsschutz applies to all existing contracts, so you can continue your private retirement provision unchanged. That means you keep your usual state allowances and tax advantages, as long as you continue to meet the contract terms. No automatic switch takes place. Even so, 1 January 2027 marks a historic new beginning for subsidised private retirement provision in Germany, since from that point the new Altersvorsorgedepot becomes available, dispensing with the rigid hundred percent contribution guarantee and so opening up entirely new return potential^[1].

• Contribution guarantee: while the classic Riester-Rente requires a full guarantee of the contributions paid in, the Altersvorsorgedepot allows you to forgo guarantees in favour of a higher equity allocation.
• Investment options: the new account allows free, higher-return investment in ETFs and equities, whereas Riester funds are often tied up in expensive, conservative annuity insurance products.
• Cost structure: classic Riester-Rente contracts are frequently burdened with high administration and set-up fees, whereas modern investment-account solutions are usually significantly cheaper.

This fundamental change of system means around ten million active Riester savers face a decision on whether to keep or transfer their contracts. A switch is legally possible from 2027, with the accumulated capital transferable directly. To find out whether this step is worthwhile for you individually, you can run detailed calculations. Use our subsidy calculator for this, to simulate the potential savings and return development transparently, or find out more in detail in our Altersvorsorgedepot guides.

The key question: who should switch, and who should stay?

Whether switching from the classic Riester-Rente to the new Altersvorsorgedepot from 2027 is worthwhile for you depends essentially on your age, your need for guarantees and the costs of your current contract. For younger, return-focused savers with a long remaining term, the new account offers considerable advantages, while older savers or people with a strong preference for security should consider staying in the Riester system. There is no blanket recommendation, which is why an individual analysis is essential.

For young savers with a long accumulation phase of over 15 years, return potential takes centre stage. Because the Altersvorsorgedepot is not subject to rigid guarantee requirements, your capital can flow profitably into global ETFs. For older savers close to retirement, on the other hand, staying is often the safer choice, since the time remaining is too short to smooth out potential market fluctuations. Anyone strongly focused on security keeps the classic Riester-Rente for its 100 percent contribution guarantee, but accepts the historically low return and high contract fees in exchange.

The legal framework is also decisive when switching. For the transfer of the capital, the old provider may charge a switching fee of at most 150 euros in the first five years, after which the transfer is free of charge^[1]. If you are unsure, you can use the subsidy calculator to precisely simulate the financial difference based on your own Riester balance. For a well-founded decision, our knowledge section and a personal independent advice service are available to support you.

Note on decision-making: the comparisons presented here are for general orientation and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Contribution guarantee vs. return potential: the security dilemma resolved

The traditional Riester-Rente is legally tied to a rigid 100 percent contribution guarantee. What sounds like reliable protection at first glance often turns out, on closer inspection, to be a brake on returns. To guarantee that all contributions paid in are preserved by the start of retirement, providers have to invest a substantial share of the capital in low-risk but extremely low-yield securities. Especially in periods of low interest rates, this means hardly any money can flow into higher-return equities or ETFs. As a result, many Riester savers see a real loss of purchasing power, once inflation is accounted for.

• Classic Riester: a mandatory contribution guarantee of 100 percent, which sharply limits the equity allocation.
• Subsidised guarantee product: flexible protection of either 80 or 100 percent of the contributions paid in.
• Altersvorsorgedepot: forgoing contribution guarantees in favour of an unlimited equity and ETF allocation for maximum return potential.

More flexibility and the long-term compound-interest effect

With the reform of private retirement provision taking effect in 2027, the federal government resolves this rigid security dilemma. Citizens will henceforth have the freedom to decide for themselves how much protection they need^[1]. The new Altersvorsorgedepot dispenses entirely with minimum guarantees, so your capital can flow 100 percent into globally diversified ETFs. This way, you benefit without restriction from the compound-interest effect over long terms. For security-focused savers, subsidised guarantee products with 80 or 100 percent protection remain available in parallel^[2]. Our knowledge section lets you follow the mathematical differences in detail. Whether switching is worthwhile for you can also be worked out directly for your personal situation using the subsidy calculator.

The switching process: how the capital transfer works from 2027

Switching from an existing Riester-Rente contract to the new Altersvorsorgedepot is legally regulated from 2027. Many savers shy away from the step because they fear bureaucratic hurdles or financial losses. The reform, however, creates clear, consumer-friendly conditions for the entire transfer process. With the subsidy calculator you can precisely work out in advance the financial impact of such a switch for your personal situation.

Allowances remain intact and tax-free

The most important news for Riester savers is this: on a capital transfer, the state subsidy remains intact in full. All allowances and tax benefits received in the past are protected and do not have to be repaid to the state as part of the switch. In addition, transferring the entire balance to the new Altersvorsorgedepot is tax-free, so no capital gains tax or other levies apply when you switch^[1]. The capital keeps working seamlessly in the new, higher-return account.

Statutory cost cap of at most 150 euros

To protect savers from excessive fees charged by their existing provider, a statutory cap on switching costs applies from 2027. If you want to transfer your Riester capital, the ceding provider may charge at most 150 euros in switching fees during the first five years after the contract was concluded^[1]. From the sixth contract year, the switch is even completely free of charge for you. The receiving provider may likewise charge a one-off administration flat fee of at most 150 euros for setting up the new Altersvorsorgedepot.

1. Analyse your existing contract: check the current balance of your Riester-Rente as well as the ongoing effective costs, to make a well-founded decision.
2. Open an account: choose a suitable provider for your new Altersvorsorgedepot - the provider comparison tool is the best way to do this - and open the account.
3. Instruct the transfer: submit a switching application to the new provider. It handles the formal process and requests the capital tax-free from the previous provider.

Note: all calculations and comparisons are for general information. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Cost comparison: Riester fees vs. account costs in the Altersvorsorgedepot

A decisive factor in deciding whether to continue your Riester-Rente or switch to the new Altersvorsorgedepot is the fee structure. Classic Riester annuity insurance products often carry substantial set-up and administration costs. According to an analysis by the non-profit research house Finanzwende, in an average Riester-Rente contract nearly every fourth euro paid in goes towards costs, and at the top end as much as 38 out of every 100 euros of contributions and allowances^[3]. These fees reduce the share of your savings that is actually invested and earning a return for you. Note: this is a comparative cost overview; it does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Cost efficiency through neobrokers and ETFs

The Altersvorsorgedepot lets you invest your retirement assets in broadly diversified ETFs through low-cost neobrokers. While the effective cost ratio for Riester annuity insurance products, driven by set-up costs, distribution fees and expensive actively managed funds, is often between 1.5% and 2.5% a year, ETF savings plans in an investment account can already be run for total costs well under 0.5% a year. Over a term of several decades, this small difference has an enormous effect on your expected final capital, through the compound-interest effect. To work out the exact impact for your contract, you can use the subsidy calculator on our portal.

Switching costs and financial hurdles

A switch comes with a statutory cap on switching costs. If you transfer your existing contract, you may be charged at most 150 euros before 5 years have elapsed; after that, switching is generally free of charge. Our knowledge section explains in detail how to apply for the transfer of your existing capital without tax disadvantages or the loss of your allowance history.

When keeping your Riester-Rente can, exceptionally, still be worthwhile

Although the new Altersvorsorgedepot offers significantly more flexible investment options from 2027, comprehensive Bestandsschutz applies to existing Riester-Rente contracts. An automatic switch is by no means always the economically sensible decision. In certain constellations, existing contracts have financial or structural features that the new investment form cannot straightforwardly offset. Before deciding, you should therefore check carefully whether your contract belongs to the exceptional cases where staying with the old system is advantageous.

• High-interest existing balance: Riester annuity insurance products taken out in the early years from 2002 sometimes guarantee a technical interest rate of up to 3.25 percent. This guaranteed rate applies throughout the entire accumulation phase and continues into the payout phase. Switching to an Altersvorsorgedepot means this contractual entitlement, and possibly the terminal bonus, is irretrievably lost.
• Maximum child allowances with a low own contribution: if you have a large number of children eligible for Kindergeld, the state allowances can make up the bulk of your savings rate, while your own minimum contribution stays minimal. Because subsidy in the new Altersvorsorgedepot is tied proportionally to your own contribution, the old system can offer a higher subsidy rate in such specific family constellations.
• Short remaining term before retirement: if you are close to retirement, the equity investment in the account has little time left to smooth out fluctuations in the capital markets. In addition, older contracts often lock in a favourable annuity factor, which secures the level of lifelong annuity per 10,000 euros of balance. Because of rising life expectancy, newer products usually show significantly lower annuity factors.

Because switching to the new system is irreversible, a precise mathematical comparison of the two options is advisable^[4]. Through our knowledge section, we provide detailed analysis of the statutory transition rules, to enable you to make a well-founded decision. You can also use the subsidy calculator to compare your existing Riester balance and allowance history against the expected returns of the account. Should your case be particularly complex, our independent advice service is available to arrange a personal conversation with licensed experts. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Calculation aid: work out your individual switching advantage

Because personal financial circumstances, age of entry and existing Riester terms vary widely, there is no blanket recommendation for or against a transfer. To shed light on this complex question, we have developed an interactive analysis tool for you. With the subsidy calculator you can calculate your potential capital boost from switching precisely. The tool compares the long-term value development of your existing Riester-Rente against the projections for a new, lower-cost Altersvorsorgedepot, giving you a solid basis for your retirement provision.

The built-in calculator runs a transparent year-by-year projection that, alongside your own contributions and state allowances, also accounts for the decisive impact of fees. An existing Riester-Rente can be transferred to the new Altersvorsorgedepot, with the new tax rules then applying to the transferred balance^[1]. Our tool also factors in the statutory cap on switching fees, which is limited to at most 150 euros in the first five years and then falls away entirely. This lets the software precisely determine the so-called break-even point, from which switching becomes financially worthwhile for you.

• Comparison of your existing Riester balance against future account projections
• Real-time calculation of the impact of product costs on your final capital, using an interactive fee slider
• Individual allowance for your personal allowance entitlements, such as the basic, child and career-starter allowances
• Calculation of the net present value (NPV) to determine the exact financial advantage over the remaining term

This well-founded comparison gives you a source-based, neutral and purely factual decision aid. In addition, our knowledge section offers detailed background reports and guides on the statutory framework for the pension reform. Should your personal contract situation be more complex, we connect you, through our independent advice service, with qualified, licensed advisers who can accompany you and clarify open questions of detail in a personal conversation.

Important note: all calculations, projections and comparisons carried out with our digital tools are for general orientation only and are purely illustrative in nature. They do not constitute investment advice, tax advice or a transactional recommendation (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Decision guide: decide for yourself, or get independent advice?

The right path to private retirement provision depends heavily on your individual prior knowledge and your personal need for security. The new Altersvorsorgedepot offers significantly more flexible investment options on the capital markets compared with the classic Riester-Rente, but it also brings new personal responsibility^[5]. To do justice to this complexity, the knowledge section offers two equally valid, transparent routes: the direct, self-directed route for independent decision-makers, or targeted support through professional guidance.

The self-directed route for independent decision-makers

If you already have experience with ETFs or equities and want to manage your retirement provision on your own responsibility, the self-directed route is ideal. The provider comparison tool is available for this. It lets you filter different account providers and neobrokers by objective quality criteria and fee structures, and choose the right product directly. In doing so, you deliberately forgo personal advice, saving potential distribution costs while keeping full control of your investment strategy.

The advantage of personal, neutral advice

For many Riester savers, the decision on whether to switch is complex, since tax effects, existing guarantees and individual family circumstances all need to be taken into account^[1]. In such cases, the independent advice service offers reliable support. It connects you directly with licensed, neutral experts who analyse your personal situation in detail and give a well-founded recommendation.

• Complex contract histories: if your existing Riester-Rente involves complicated special arrangements or a high balance.
• Individual advisory needs: if you want a tailored tax assessment of your subsidy entitlements.
• Limited prior knowledge: if you feel unsure trading securities on your own and prefer professional support.
• Preference for security: if you want to weigh up capital-market risks in detail with an independent expert.

Whether you organise your retirement provision independently with the provider comparison tool or choose the secure route through the independent advice service, our goal is to give you the orientation you need. As a first step, also use our subsidy calculator to get an initial overview of your potential advantages and state contributions.