How much is the subsidy for the Altersvorsorgedepot?

Tilman Freyenhagen

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

The new AVD subsidy from 2027: the essentials at a glance

From 1 January 2027, the state subsidy for the new Altersvorsorgedepot (AVD) amounts to up to 540 euros in Grundzulage and an additional 300 euros in Kinderzulage per child per year. On top of that comes a tax benefit via the Sonderausgabenabzug on up to 1,800 euros of personal contributions plus the allowances owed^[1]. For young savers under 25, the state also grants a one-off Berufseinsteigerbonus of 200 euros when they start their contract.

The exact size of your individual subsidy depends on the level of your annual contributions. To receive the maximum Grundzulage of 540 euros, you need to pay in the full personal contribution of 1,800 euros. Anyone who pays in less receives the subsidy proportionally, as long as the annual minimum contribution of 120 euros is met. This new two-tier subsidy logic combines direct state payments with significant tax advantages via the tax office. To work out your exact state payments without complication, our interactive subsidy calculator is available to you.

Please note that all calculations and projections presented in this article are purely illustrative in nature. They serve to illustrate the state subsidy rules and do not constitute investment advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG). For detailed planning tailored to your personal circumstances, we recommend qualified advice, which you can request through our independent advice service.

The Grundzulage: up to 540 euros in state payments a year

The new Altersvorsorgedepot brings a fundamental change of system for state support from 2027. While the old Riester system tied fixed allowances to rigid criteria, the new Grundzulage is based on a proportional subsidy logic from the Federal Ministry of Finance^[1]. That means every euro you pay in is directly subsidised up to a ceiling, so you no longer necessarily have to pay in a fixed percentage of your previous year's income to receive the full state subsidy. This new structure is explained in detail in our knowledge section, to make it easier for you to plan your contributions optimally.

The annual Grundzulage is calculated through a transparent two-tier model. In the first tier, you receive a state subsidy of 50 percent on the first 360 euros of your annual personal contribution, which comes to a maximum payment of 180 euros. For every further euro you pay in, a subsidy rate of 25 percent applies in the second tier. This reduced rate applies to contributions between 361 euros and 1,800 euros a year, giving an additional allowance of up to 360 euros. If you exhaust the maximum eligible personal contribution of 1,800 euros a year, the two tiers add up to an annual maximum Grundzulage of exactly 540 euros. To claim entitlement, you only need to meet the statutory minimum contribution of 120 euros a year.

Thanks to this proportional logic, the Altersvorsorgedepot pays off for almost any budget, since even smaller contributions from 10 euros a month are directly subsidised. To calculate your personal state subsidy exactly and simulate the long-term effect on your final capital, our free subsidy calculator is available to you. With it, you can play through different scenarios to build a solid basis for your decision. Please note that all calculations are purely illustrative. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The Kinderzulage: up to 300 euros of support per child

The Kinderzulage is one of the most attractive pillars of the new state subsidy in the Altersvorsorgedepot from 2027. With the reform of private retirement provision, the logic behind state payments is simplified and tied even more directly to your own savings efforts. For every child entitled to Kindergeld (child benefit), you receive an allowance of up to 300 euros a year^[1]. What's distinctive about the new rule is the transparent 1:1 ratio. For every euro you pay into your state-subsidised account yourself, the state adds one euro as Kinderzulage, until the maximum subsidy of 300 euros per child is reached. This system replaces the old, often rigid Riester rules and makes the subsidy highly attractive, particularly for families on smaller incomes.

Under this 1:1 rule, an annual personal contribution of just 300 euros is therefore enough to claim the full Kinderzulage for a child. The only thing to bear in mind is the statutory minimum contribution of 120 euros a year, which every saver has to make to be eligible for the allowance at all. The application and credit are handled without complication directly through your Altersvorsorgedepot, where the capital can flow into ETFs or other securities. If you want to calculate how the Kinderzulage, together with the Grundzulage, affects your long-term wealth development, our subsidy calculator helps you with a transparent projection. We've also set out the mathematical basis and legal details of the entire subsidy structure for you in our knowledge section.

Please note: all calculations and subsidy amounts stated are solely for illustrating the statutory framework from 2027. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The Berufseinsteigerbonus: an extra payment for young savers under 25

Anyone who starts saving for retirement early benefits not only from a long investment horizon, but also from an additional state incentive. If you open an Altersvorsorgedepot before your 25th birthday, you receive a one-off Berufseinsteigerbonus (the career-starter bonus) of 200 euros. This state payment is credited on top of the regular Grundzulage and is meant to make it easier for young people to get started^[1].

To receive this additional subsidy, you need to pay the statutory minimum personal contribution of 120 euros a year (equivalent to 10 euros a month) into your account. Experts at Stiftung Warentest also regularly point out that starting to save early pays off over several decades thanks to the compounding effect^[2]. Through our subsidy calculator, you can work out directly how this one-off amount, together with the ongoing allowances, develops over your remaining working life. You'll also find supplementary information on the general subsidy models in our guides.

This one-off payment acts as a lever for your later pension. Because the Altersvorsorgedepot is based on high-return ETFs and equity investments, even this 200-euro state top-up can make a noticeable contribution through market performance over a term of 40 years. For young savers who are unsure about how to structure their account, or have open questions about the process, our independent advice service offers the chance to talk to licensed experts and set out a tailored strategy. This way, the state payment can be invested optimally from the start.

Note on the example calculations: all values and model assumptions stated are solely for illustration and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The minimum personal contribution: from what point you receive the full subsidy

The state subsidy for the new Altersvorsorgedepot is tied to clear statutory conditions. To be entitled to it at all, you must pay in an annual minimum personal contribution of 120 euros, which comes to a monthly amount of 10 euros^[1]. This threshold is a strict floor: if you fall below these 120 euros in a calendar year, even by a small margin, your entire entitlement to all state allowances lapses completely for that savings year^[1]. In that case, there is neither the Grundzulage nor any Kinderzulage nor the one-off Berufseinsteigerbonus for young savers.

As soon as you reach this minimum contribution, the state subsidy kicks in and rises proportionally with your contributions. From the 2027 launch, the subsidy logic follows a two-tier structure: for the first 360 euros of your annual personal contribution, you receive a payment of 50 cents per euro paid in^[3]. Every further euro up to the ceiling of 1,800 euros is subsidised at 25 cents^[3]. Anyone who fully exhausts the maximum contribution therefore secures the maximum annual Grundzulage of 540 euros.

Besides the Grundzulage, the Kinderzulage and tax aspects also play a decisive role for many savers. To help you find the optimal balance for your personal circumstances, we provide transparent tools. Our interactive subsidy calculator lets you work out your expected subsidy without complication. If you have more in-depth questions about structuring your contributions optimally, or how it interacts with existing contracts, our knowledge section offers reliable guidance. Our independent advice service is also available to clarify any open questions directly with licensed experts.

Note on the calculations: all figures and subsidy amounts stated illustrate the statutory framework. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The tax advantage: the Sonderausgabenabzug for the Altersvorsorgedepot

Besides the direct state allowances, the tax relief forms the second load-bearing pillar of the new retirement provision from 2027. For many taxpayers, especially employees and self-employed people with medium to higher incomes, this tax lever is often the far larger financial benefit. On the basis of the corresponding law passed by the German Bundestag, you can claim your contributions for tax purposes^[1]. This directly lowers your personal tax burden in your annual tax return and considerably increases the net return on your accumulated capital.

Specifically, the statutory rule provides that your own savings contributions of up to 1,800 euros per calendar year, plus the allowances claimed, may be deducted as Sonderausgaben (special expenses). To work out whether the direct allowance or the tax saving is more favourable for you, the tax office automatically carries out a Günstigerprüfung (a more-favourable-option comparison) as part of your income tax return. If the tax saving turns out higher than the direct allowances you're entitled to, the difference is paid out to you as an additional tax refund. To calculate this dynamic precisely for your personal income situation, it's advisable to use digital analysis tools such as our subsidy calculator.

This two-tier procedure ensures that all groups of savers benefit equally from the state subsidy. While families and career starters are often guided by the direct allowances, higher earners get the maximum benefit via the Sonderausgabenabzug. Whichever path you choose, the capital returns generated in the account remain tax-free throughout the entire accumulation phase. You'll find detailed background information on the statutory details and worked examples in our knowledge section.

Please note: all tax calculations and projections are solely for illustrative purposes and do not constitute individual tax or financial advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Worked examples: how much subsidy different types of savers receive

How much state subsidy you specifically get for your Altersvorsorgedepot depends largely on your family situation, your income and the level of contribution you choose. While families benefit from direct allowances, higher earners get significant advantages via their tax return. To illustrate the new two-tier subsidy logic from 2027 clearly, we've calculated three typical saver profiles based on the official specifications of the Federal Ministry of Finance^[1].

With higher incomes, the tax Günstigerprüfung additionally applies. The tax office automatically works out whether the tax relief via the Sonderausgabenabzug for the retirement-provision contributions is more advantageous than the directly paid-out allowances^[1]. For a precise calculation tailored to your personal circumstances, you can use the subsidy calculator, which transparently simulates these calculation steps. Our knowledge section also offers more in-depth analyses of the tax rules. Alternatively, an independent advice service is available to clarify any open questions in a personal conversation with licensed experts.

Important note on the calculations: all figures and model calculations given are solely for general information and to illustrate the new statutory subsidy structures from 2027^[1]. They do not constitute a binding assurance. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

From knowledge to decision: finding the optimal path for your account

Successfully moving from theoretical information to practical implementation requires, above all, structure and reliable guidance. In our knowledge section, we provide you with the entire statutory framework and comparative analyses, neutrally. Because the state AVD subsidy depends heavily on your individual circumstances, your income and your family situation, a personal assessment is essential. We support you in making the decision that's optimal for you. Depending on whether you'd rather manage your retirement provision completely on your own, or benefit from personal, professional support, our platform offers you two equally valid, transparent and independent paths.

Whichever of these two paths you choose for your future, the first sensible step is always to calculate your individual subsidy entitlements precisely. With the subsidy calculator, you can simulate your state subsidy without complication, in just a few minutes. The underlying calculation logic is based on the official BMF specifications. Our tool precisely works out for you how the maximum Grundzulage of up to 540 euros, the Kinderzulage of up to 300 euros per child, and the one-off Berufseinsteigerbonus of 200 euros affect your expected final capital. Use this source-based, free decision-making aid as a solid foundation for your retirement provision.