Minimum contribution for the AVD: how much for the full subsidy?

Tilman Freyenhagen

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

The new simplicity: the minimum contribution for the Altersvorsorgedepot from 2027

From 1 January 2027, the statutory minimum personal contribution for the new Altersvorsorgedepot is a uniform 120 euros per calendar year, which works out to exactly 10 euros a month^[1]. With this straightforward flat amount, you secure your entitlement to the state allowances as an eligible saver, without needing an error-prone income calculation. This new rule replaces the previous Riester formula, under which at least 4 percent of the previous year's income subject to statutory pension insurance had to be paid in to avoid a proportional cut to the subsidy.

Why the uniform minimum contribution makes private provision easier

Unlike the old Riester system, with the new state subsidy from 2027 you no longer have to make complicated calculations based on your previous year's income subject to statutory pension insurance contributions. This simplification, documented by the Federal Ministry of Finance (BMF), ensures maximum transparency and prevents the unintended subsidy cuts that have unsettled many private savers in the past. In our source-based knowledge section, we set out all the legal details for you, neutrally and clearly. If you want to know exactly how your contributions affect your eventual capital, our interactive subsidy calculator can help you directly.

Whether you end up funding your future Altersvorsorgedepot yourself through low-cost ETFs, or would rather draw on personal support via an independent advice service, is entirely up to you. Our neutral platform presents both options as absolutely equally valid and respectable paths for your retirement provision. Please always note our important legal notice: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. All calculations and comparisons are for information purposes only and do not constitute an individual investment recommendation.

How the state subsidy is made up

The reform of private retirement provision from 2027 fundamentally simplifies the state subsidy system and replaces the complicated calculations of the old Riester-Rente^[2]. The new allowance structure for the Altersvorsorgedepot consists of a two-tier Grundzulage plus targeted additional subsidies for families and young people. The state subsidises your own contributions directly through percentage-based payments, so you no longer have to laboriously work out a rigid personal-contribution rate yourself, as before. The entire statutory framework is set by the BMF and guarantees you a transparent structure for building your wealth.

The maximum Grundzulage is therefore 540 euros per calendar year, provided you pay in the maximum contribution of 1,800 euros yourself^[2]. In addition, you're entitled to a Kinderzulage of up to 300 euros for each child, added on top of your own contributions at a 1-to-1 ratio. So if, for example, you pay in 300 euros for a child, you receive the full 300 euros in subsidy on top of your Grundzulage. Young savers under 25 also benefit from a one-off Berufseinsteigerbonus of 200 euros when they start their contract. To be entitled to these state allowances at all, an annual minimum contribution of 120 euros applies. If your contribution falls below this threshold, the state subsidy is lost entirely.

To calculate your personal subsidy rate and optimal personal contribution precisely, you can use the interactive subsidy calculator on our platform. It works out the exact size of your allowances based on your individual circumstances and contributions. Please note the legal notice: all calculations are illustrative and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The difference from the old Riester system: the end of the 4-percent rule

The state subsidy for the Riester-Rente was always tied to a complex hurdle: the notorious four-percent rule. To receive the uncut allowances from the state, savers had to pay in at least four percent of their previous year's income subject to statutory pension insurance contributions, minus the allowances they were entitled to, themselves each year. Anyone who didn't adjust this calculation annually, or transferred too little when their salary fluctuated, faced a proportional cut to the state Grundzulage and Kinderzulage. In practice, this led to considerable administrative burden and often to unintended shortfalls in the subsidy.

With the introduction of the new Altersvorsorgedepot from 2027, this complicated link to income is abolished completely^[3]. The new subsidy model separates entitlement to state allowances entirely from the level of your salary. Regardless of how much you earned the previous year, a uniform floor applies: to be entitled to the state subsidy at all, only a statutory minimum contribution of 120 euros a year is required, which comes to ten euros a month^[4]. This fixed base amount massively simplifies financial planning, since savers no longer have to recalculate their contributions every year.

This reform drastically lowers the financial and administrative barriers, especially for families, low earners and career starters. With just the annual minimum contribution of 120 euros, you already secure a direct state subsidy of 60 euros a year, since the first 360 euros of personal contributions are subsidised at a rate of 50 percent. For a precise simulation of your individual contributions and the resulting state payments, our interactive, source-based subsidy calculator is available to you. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The base amount in detail: what does this mean for low earners?

Anyone on a low income who wants to receive state allowances for retirement provision benefits from a significant simplification from 2027. With the new Altersvorsorgedepot, you must pay in at least a base amount of 120 euros a year yourself to be eligible for the subsidy at all^[2]. This fixed amount, equivalent to 10 euros a month, is the absolute floor and completely replaces the complicated income-dependent calculation rules of the old Riester-Rente.

In the old Riester system, the minimum personal contribution depended largely on 4 percent of the previous year's income subject to statutory pension insurance contributions, from which the allowances owed were deducted. The base amount at the time was 60 euros a year. With the new Altersvorsorgedepot, this income-dependent calculation at the floor disappears completely. Low earners benefit especially from this new rule, since they no longer face an income-dependent surcharge and therefore no risk of unforeseen back-payments or allowance cuts. They only need to pay in the fixed amount of 120 euros a year to keep their entitlement to state allowances, regardless of how high their actual income was the previous year.

This new legal rule guarantees savers maximum transparency and financial predictability when building their wealth. Even with this small annual personal contribution, you secure your entitlement to the state allowances, provided you're immediately eligible for the subsidy; the full Grundzulage of 540 euros requires an own contribution of 1,800 euros. For a precise, source-based simulation of your individual allowances, savings rate and expected final capital, you can use the subsidy calculator on our platform. Note: all calculations and comparisons provided are for information purposes only and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

A concrete worked example: minimum contribution and maximising the allowance

Two simple savings models illustrate the relationship between your own contribution and the allowances under the new Altersvorsorgedepot from 2027. The statutory minimum contribution of 120 euros a year is the floor for receiving state payments. Even at this level, you can achieve a high subsidy rate, while higher contributions exhaust the subsidy up to the maximum. Exactly how the allowances are calculated is governed by the rules of the Federal Ministry of Finance^[2]. Our subsidy calculator lets you run a personal calculation.

Saver A pays in only the annual minimum contribution of 120 euros, which comes to 10 euros a month. Since the subsidy system provides a 50-percent subsidy rate on contributions up to 360 euros, the state adds a Grundzulage of 60 euros^[2]. The annual savings volume therefore comes to 180 euros. This model is ideal for beginners or people on a tight budget.

Saver B aims for the maximum subsidy and pays in 1,800 euros. Here the two-tier calculation applies: for the first 360 euros, 180 euros of allowance (50 percent) flow in; for the remaining 1,440 euros, a further 360 euros of allowance (25 percent) flow in. This means the saver exhausts the maximum Grundzulage of 540 euros^[2]. The account volume rises to 2,340 euros a year. Our Altersvorsorgedepot guides offer more in-depth details on this.

These examples show the high flexibility of the new system. For calculating your individual allowances, including any Kinderzulage, our source-based calculator is available to you. Please note: these calculations are for information purposes only and illustrate the state subsidy structure. This does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Special rules for the self-employed, career starters and families

With the introduction of the Altersvorsorgedepot from 2027, the legislator significantly simplifies access to the state subsidy. A central role is played by the new minimum personal contribution of a uniform 120 euros a year, which replaces the historically complicated Riester calculation. This simplification ensures a high degree of transparency and creates reliable planning security for all private savers in Germany. Groups who were often disadvantaged by regulatory hurdles in the past, or had to cope with complex calculations, benefit directly from the new, flexible framework.

For the self-employed and freelancers, 2027 marks a historic turning point in subsidised private retirement provision. While they remained largely excluded from the classic Riester model, they now get full access to the state subsidy. Thanks to the low annual minimum contribution of just 120 euros, the self-employed can act flexibly even with fluctuating income and still secure the state allowances^[5]. This makes it easier to get started with capital-market-based retirement provision without high financial barriers, which we've covered in detail in our knowledge section.

The reform also offers a strong financial incentive for career starters under 25. If they open an Altersvorsorgedepot and pay in the minimum contribution of 120 euros, they receive a one-off Berufseinsteigerbonus of 200 euros on top of the regular state allowances. Families likewise benefit from a straightforward Kinderzulage of up to 300 euros per child, which is also tied directly to the personal contribution. To calculate your individual subsidy precisely and check how large your personal contribution should be, our interactive subsidy calculator is available to you (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Consequences of paying in too little: what happens if you fall short?

Anyone who pays in less than the statutory minimum contribution of 120 euros a year for the new Altersvorsorgedepot loses entitlement to the state subsidy for that calendar year entirely^[6]. Unlike the old Riester-Rente, where too-low contributions only led to a proportional cut in the allowances, a strict floor of 10 euros a month applies from 2027. If you don't reach this amount, you receive neither the state Grundzulage nor other benefits such as the Kinderzulage for that year^[2]. This new rule represents a considerable simplification compared with the historically complex Riester calculation, but carries the risk of a total loss of the subsidy through inactivity. To prevent this, it's advisable to keep checking your contribution rate regularly.

The Riester rule versus the Altersvorsorgedepot rule

The reform of private retirement provision aims to cut administrative hurdles. Whereas under Riester the minimum personal contribution had to be calculated as a fixed percentage of the previous year's income subject to statutory pension insurance contributions, minus the allowances owed, the new system relies on a clear flat amount. This makes the system more transparent, but requires savers to pay closer attention to managing their account.

This change in the system simplifies annual planning, but it doesn't forgive negligence when it comes to paying in. As a saver, you must make sure yourself that your annual personal contribution doesn't fall below the magic threshold of 120 euros. Otherwise, you miss out on valuable state payments for your private retirement provision. To check your individual provision needs precisely and simulate different contribution levels, you can use the subsidy calculator, which serves as reliable guidance. For further details on the statutory rules, our knowledge section offers well-founded articles. Please note: all the mathematical comparisons and calculations shown are for demonstration purposes only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

A step-by-step plan for working out your optimal contribution

To receive state allowances for the new Altersvorsorgedepot from 2027, you must make a minimum annual personal contribution of 120 euros^[2]. This fixed amount, which comes to just ten euros a month, completely replaces the complicated Riester rule of four percent of the previous year's income. If you pay in less than this minimum contribution in a calendar year, your entitlement to the state subsidy lapses entirely for that year.

Three steps to your optimal contribution level

Working out your contribution has become significantly simpler thanks to the new matching system. The state pays a Grundzulage of 50 percent on the first 360 euros of your personal contribution, plus 25 percent on further contributions up to a total of 1,800 euros a year. To find out how much you should pay in, a structured approach is recommended. The subsidy calculator helps you work out your individual savings rate and the maximum allowance amount precisely. (Note: the calculations are illustrative and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

1. Secure the minimum contribution: make sure you pay in at least 120 euros a year to be eligible for the subsidy at all.
2. Aim for the maximum subsidy: if possible, raise your annual personal contribution to up to 1,800 euros to exhaust the full Grundzulage of 540 euros.
3. Factor in extra bonuses: check any additional entitlements, such as the Kinderzulage of up to 300 euros per child, which is also added on as a matching model.

For more in-depth details on the new statutory rules and the legal basis, you can use our knowledge section. If you're unsure about choosing a plan, or prefer personal advice tailored to your circumstances, our independent advice service helps you find the right qualified expert.