What is the Altersvorsorgedepot? Definition and 2027 launch

Tilman Freyenhagen

Published on 13 June 2026 · Updated on 7 August 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

What is the Altersvorsorgedepot? The definition of the Riester successor

The Altersvorsorgedepot (AVD) is a state-subsidised account for private retirement provision starting on 1 January 2027 and acts as the statutory successor to the Riester-Rente. Savers pay in on their own into broadly diversified asset classes such as ETFs and investment funds, while benefiting from allowances and tax advantages. Unlike the classic Riester-Rente, the Altersvorsorgedepot drops the requirement for a full contribution guarantee, enabling significantly higher return prospects.

The Altersvorsorgedepot marks the biggest system change in state-subsidised private retirement provision since the Riester-Rente was introduced in 2002. With the retirement provision reform act passed by the Bundestag on 27 March 2026 and approved by the Bundesrat on 8 May 2026, the AVD is officially introduced on 1 January 2027. For the roughly 14.9 million holders of existing Riester contracts, this raises the fundamental question of whether they should switch to the new, higher-return system. The key difference lies in the departure from rigid contribution guarantees. While conventional Riester products must guarantee 100 percent of the capital paid in at the start of retirement, and providers are therefore barely able to invest in higher-return equities, the Altersvorsorgedepot drops this guarantee requirement to enable more profitable investment in ETFs.

The two-track path to the optimal retirement provision

To make the right decision in this new financial landscape, the knowledge section offers reliable, source-based guidance on Vorsorgedepot-Lotse. Since individual circumstances vary, savers should calculate carefully before switching. With the interactive subsidy calculator, you can precisely analyse your personal state subsidy and the long-term cost impact. Anyone who prefers to act digitally and decisively afterwards can choose an independent route. Anyone who instead wants personal advice can use the independent advice service to have free conversations with licensed experts.

Please note that all calculations and comparisons are for illustration only. Not investment advice within the meaning of § 1(1a) no. 1a KWG. Every investment carries risk.

The legal basis: the path to the start on 1 January 2027

The legislative process for the new Altersvorsorgedepot was successfully completed in spring 2026. The German Bundestag passed the landmark law reforming private retirement provision on 27 March 2026, after intensive deliberations. Only a few weeks later, on 8 May 2026, the Bundesrat also approved the comprehensive reform without objection. With this step, the legal foundation is in place for the entire project, which governs the official start signal for the new private retirement provision on 1 January 2027. This opens a new chapter in state-subsidised retirement provision, offering savers significantly more flexible investment options.

Legal certainty for savers and providers

The promulgation of the retirement provision reform act in the Federal Law Gazette on 29 May 2026 brought final, formal legal certainty for all market participants. For you, this reliability means that the legal framework, the exact subsidy conditions, and the tax rules for your future life planning are reliably settled. At the same time, this lead time gives providers ample time to prepare. Banks, fund houses and brokers can build the necessary IT infrastructure and develop certified account solutions that meet the statutory requirements before the official turn of the year. This timeframe also creates the necessary clarity for the roughly 10 million active holders of a Riester contract. They have sufficient opportunity until the 2027 launch to review their existing contracts thoroughly and prepare a strategic decision on a possible switch.

To find out whether switching from an existing old contract to a modern account is worthwhile for you, you can use the subsidy calculator on our platform. We accompany you on this path as your neutral guide through the upcoming changes, and support you with source-based, transparent information to help you make the right decision for your private retirement provision.

How does the AVD work? Eligible asset classes and return prospects

The Altersvorsorgedepot is based on a fundamental principle: state-subsidised, return-oriented saving without the rigid contribution guarantees of the old Riester-Rente. While classic Riester contracts had to fully guarantee the contributions paid in by the start of retirement, forcing providers into very conservative, low-return investment, this requirement is dropped for the new account. Instead, you save directly in higher-return financial instruments and tap into the long-term growth power of global capital markets to build your wealth for retirement.

Eligible asset classes for the state subsidy

To ensure a solid balance between return and safety, the legislator limits eligible asset classes for the subsidy to certain securities. Under the state subsidy, savers can invest mainly in broadly diversified ETFs and investment funds that meet certain risk profiles. In principle, funds in risk classes one to five are eligible, which also includes global equity ETFs such as those tracking the MSCI World. Speculative leveraged products or individual shares, by contrast, are excluded, to limit the risk to your retirement provision.

• Broadly diversified equity ETFs and classic investment funds up to risk class five (for example, global equity indices for long-term return potential)
• Interest-bearing bonds, bond funds and money market investments for more risk-conscious savings phases or shortly before retirement
• No speculative individual securities, cryptocurrencies, leveraged products or closed-end funds

By dropping guarantee costs, the long-term return prospects for your private retirement provision rise considerably. Calculations show that even a small difference in annual return can have a substantial effect on the final capital over decades. If you want to check how the new account subsidy compares with an unsubsidised ETF savings plan, you can use our source-based subsidy calculator for initial guidance. Please note: sample calculations are for illustration only and do not constitute investment advice (not investment advice within the meaning of § 1(1a) no. 1a KWG).

The state subsidy at a glance: allowances and tax advantages

The enacted reform of private retirement provision from 1 January 2027 puts state support on a new, highly attractive footing. The new Altersvorsorgedepot (AVD) replaces the previous Riester model, often criticised as inflexible, for new business. We show you how the direct subsidy in the form of state allowances is structured. At its core, the state rewards your own initiative through direct co-financing of your savings contributions, which offers considerable return advantages, especially for families, low earners and career starters.

• Basic allowance: your savings contributions up to an amount of 360 euros a year are subsidised with a 50 percent allowance (maximum 180 euros). For contributions beyond that, up to 1,800 euros, you receive an allowance of 25 percent, which corresponds to a maximum annual basic allowance of 540 euros.
• Child allowance: for each child eligible for child benefit, the state pays an additional allowance of up to 300 euros a year, matched 1:1 to your contributions.
• Career-starter bonus: savers who have not yet completed their 25th year at the time of signing the contract receive a one-off bonus of 200 euros, to make early wealth building easier.
• Special expense deduction: alongside the allowances, tax relief also applies through the special expense deduction in the income tax return, where this is more favourable for you.

To receive these allowances, a minimum own contribution of 120 euros a year applies. Since the exact calculation of your individual subsidy depends on your income, marital status and investment amounts, we have provided a useful tool for you. With our interactive subsidy calculator you can work out your state allowances, the expected final capital, and the tax effects transparently. Please note: all calculations and projections shown on this platform are for information and illustration only; they do not constitute investment advice within the meaning of § 1(1a) no. 1a KWG.

Whether you run your Altersvorsorgedepot yourself through a neobroker or want personal guidance - we support you neutrally either way. Use our knowledge section for deeper insights, or have yourself connected with a vetted expert through our independent advice service, to secure the right course for your retirement provision from 2027.

Riester-Rente vs. Altersvorsorgedepot: the direct comparison

Private retirement provision in Germany is facing a comprehensive and urgently needed reform. At the end of 2024, around 14.9 million Riester contracts still existed nationwide. Many of these old contracts show inadequate returns, due to extremely high annual administration costs and strict statutory investment limits, that often barely keep pace with inflation. With the launch of the Altersvorsorgedepot in 2027, the Federal Ministry of Finance is responding specifically to these widespread shortcomings. The fundamental difference lies in the deliberate departure from the rigid hundred-percent contribution guarantee, which finally clears the way for higher-return, broadly diversified ETF savings plans.

This fundamental system change offers considerable financial advantages, especially for younger savers, families entitled to state child allowances, and the self-employed. By investing in broadly diversified index funds, savers can participate long term and directly in the growth of global financial markets. For the millions of holders of existing Riester contracts, the launch in 2027 raises the crucial question of whether transferring their painstakingly saved capital into the new account is economically worthwhile. Tax rules, the existing allowance history, and possible switching fees charged by the old provider must all be weighed carefully, since there is no blanket recommendation.

To give you the best possible orientation in this complex decision-making process, the source-based knowledge section provides neutral guides and background reports. With our interactive tool, the subsidy calculator, you can simulate your personal state subsidy, the expected final capital, and the long-term cost impact of switching, independently and easily. If you prefer personal guidance, we connect you through our platform with a free independent advice service to licensed experts. Please note our statutory disclosure here: all calculations on this platform are for illustration only and do not constitute investment advice within the meaning of the Banking Act (KWG).

Who benefits particularly from the Altersvorsorgedepot?

The law reforming private retirement provision, passed by the Bundestag on 27 March 2026 and approved by the Bundesrat on 8 May 2026, ushers in a historic system change in Germany on 1 January 2027. While the previous Riester-Rente often suffered from high contractual costs and a rigid contribution guarantee, the new Altersvorsorgedepot opens the way for a higher-return, flexible investment in ETFs, funds and bonds. Almost all private savers can benefit from this fundamental realignment. Nevertheless, there are certain target groups for whom the new system offers a particularly large lever for private provision, due to their life situation or the tax framework.

The main beneficiaries of the reform

• Self-employed people and freelancers: these roughly four million working people were generally excluded from the old Riester system. From 2027 they gain unrestricted access to state-subsidised retirement provision for the first time, and can flexibly adjust their contributions to fluctuating income.
• Families and single parents: with a state child allowance of up to 300 euros per child a year, the personal subsidy rate can be increased dramatically. Even small monthly own contributions are enough to secure the full state support for the whole family.
• Career starters and young savers: anyone who has not yet completed their 25th year and opens an Altersvorsorgedepot benefits from a one-off state career-starter bonus of 200 euros, invested directly as additional starting capital.
• Existing Riester savers: for holders of the roughly 14.9 million Riester contracts, the new account offers an attractive switching option. From 2027, the accumulated capital can be transferred into the higher-return account without losing tax status or subsidy, to benefit from better market opportunities without a contribution guarantee.

Whether you manage your account yourself through a neobroker or prefer personal financial advice from qualified experts is entirely up to you. Both approaches are respectable and sensible options for effectively closing your pension gap. To analyse the exact financial impact of the state subsidy on your personal savings rate, you can calculate the advantages individually with the subsidy calculator. The knowledge section offers you reliable, source-based comparisons for this. If you are looking for support with the decision, our independent advice service connects you with the right partner. Not investment advice within the meaning of § 1(1a) no. 1a KWG.

The Riester-switch question: keep the existing contract or switch?

With the official launch of the new subsidised private retirement provision on 1 January 2027, holders of the roughly 15 million existing Riester contracts in Germany face a key question for the future: should the existing old contract be continued, or should the balance be transferred? Statutory grandfathering applies to all existing contracts. As a saver, you therefore do not need to take any hasty steps. You can keep paying into your contract as before and continue to receive the contractually guaranteed terms and state allowances.

A switch to the new Altersvorsorgedepot, however, offers the option from 2027 of transferring the accumulated capital without losing tax status or subsidy. This means you do not have to repay state allowances and tax advantages already received when switching. An important economic aspect here is the potential switching cost: the legislator provides for a clear switching-cost cap that limits the fees for a transfer to a maximum of 150 euros.

To make an informed decision, you should compare the individual costs and the long-term return trajectory closely. Not investment advice within the meaning of section 1(1a) no. 1a KWG. Our subsidy calculator helps you simulate the exact financial effects of a switch for your personal situation transparently. As a neutral knowledge section, we provide you with all the necessary data. If you would also like personal support, you can use our independent advice service to arrange a free orientation conversation with a licensed expert.

The path to the right decision: self-directed vs. advice

The move from mere information to a concrete financial decision is often seen as the biggest hurdle in private retirement provision. Many savers remain stuck in a kind of decision paralysis despite having sound knowledge, because the flood of tariffs and options feels overwhelming. Against this backdrop, our Vorsorgedepot-Lotse has established two equally valid, transparent paths that meet your individual needs. Our knowledge section serves as your neutral guide here. Whether you take charge of your provision yourself or prefer personal guidance: both options are respectable and promising paths to financial independence in old age.

Path 1: the subsidised account, self-managed

If you like managing your finances digitally and already have experience with equities or ETFs, the self-managed account is the right choice. From the start year 2027, you can run the Altersvorsorgedepot directly and very cost-effectively through a modern neobroker. With our subsidy calculator you can determine in advance, precisely, how large your state allowances will be and whether switching from an existing contract pays off for you. For the subsequent market comparison, our provider comparison, based on defined criteria, is available to you. This way you can independently, and free of outside influence, find the provider with the best terms for your individual savings rate.

Path 2: tailored provision through personal advice

For private savers who want personal, expert guidance through the dense jungle of state subsidy rules, professional advice is the ideal solution. This applies in particular to the roughly 9.9 million holders of existing Riester contracts in Germany, but also to the self-employed and young families with more complex subsidy conditions. Through our independent advice service we connect you with licensed, independent financial experts. Together with you, they work out a tailored provision solution that fits exactly your family and tax situation, entirely non-binding and completely free of sales pressure.

Please note: all calculations and comparisons on our platform are for illustration only. They do not constitute investment advice within the meaning of section 1(1a) no. 1a KWG.