Grundzulage for the Altersvorsorgedepot: amount & requirements

Tilman Freyenhagen

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

1. The new Altersvorsorgedepot: a milestone from 2027

The state Grundzulage for the new Altersvorsorgedepot will be up to 540 euros a year from 1 January 2027^[1]. This maximum subsidy is reached through a proportional state top-up on your own contributions: the state pays an allowance of 50 percent on the first 360 euros of your own contributions, plus a further 25 percent on up to 1,440 euros of additional contributions. To receive the full 540-euro Grundzulage, savers therefore need to make an annual personal contribution of 1,800 euros. With the launch of the Altersvorsorgedepot on 1 January 2027 as the capital-market-based successor to the classic Riester-Rente (Germany's existing subsidised private pension), German retirement provision reaches a historic milestone. In this article from our knowledge section we offer you source-based, neutral orientation to help you understand the exact terms of the subsidy.

The state subsidy does, however, require you to pay in an annual minimum contribution of 120 euros; below that, the allowance is lost entirely. If your personal contribution is above this minimum but below the 1,800 euros required for the maximum allowance, the subsidy is calculated according to the tiered formula. To work out your personal entitlement precisely, and its exact cost impact compared with existing Riester contracts, our interactive subsidy calculator is available to you.

2. The amount of the new Grundzulage: up to 540 euros a year

With the launch of the new Altersvorsorgedepot on 1 January 2027, state support in Germany is being reorganised^[1]. The maximum annual Grundzulage rises from the previous 175 euros under Riester-Rente to up to 540 euros. That is an increase of more than 200 percent. This substantial rise is meant to strengthen the incentive to save privately for retirement through the capital markets. The Grundzulage for the Altersvorsorgedepot is independent of family situation or number of children. It is available to anyone directly entitled who meets the requirements.

Calculation formula and worked examples

The Grundzulage is calculated in two tiers. The state tops up your annual personal contributions by 50 percent for the first 360 euros, and by 25 percent for every further euro up to a ceiling of 1,800 euros in personal contributions. It's important to know that a statutory minimum contribution of 120 euros a year applies. Anyone who does not pay in this amount receives no allowance at all. If your personal contribution falls in between, the allowance is calculated using the mathematical formula, which allows for more flexible handling than the old Riester rules.

• Full subsidy at a 1,800-euro personal contribution: with an annual savings contribution of 1,800 euros, you receive the maximum Grundzulage of 540 euros (180 euros from the first tier plus 360 euros from the second tier).
• Reduced subsidy at a 360-euro personal contribution: if you pay in less, say 360 euros, you receive a correspondingly reduced allowance of 180 euros (50 percent of 360 euros).
• No subsidy below a 120-euro personal contribution: if you pay in less than the minimum contribution of 120 euros, you receive no state allowance (0 euros).

To work out your personal subsidy and its effect on your future capital precisely, you can use the subsidy calculator. Please note: these calculations are for illustration only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

3. The mathematical subsidy formula: how your Grundzulage is calculated

From 2027, the new Altersvorsorgedepot replaces the old Riester system with a transparent, contribution-based subsidy. The maximum state Grundzulage is 540 euros a year and is calculated according to a clear formula set in law by the Federal Ministry of Finance (BMF). Instead of rigid flat amounts, the exact size of your state top-up is determined directly by your own contributions in the relevant calendar year.

The statutory subsidy formula has two tiers and rewards even small savings contributions^[1]. For the first 360 euros that you pay into your account yourself each year, you receive a state subsidy of 50 percent, which comes to a maximum of 180 euros. For every further euro you save between 360 euros and 1,800 euros, you receive an allowance of 25 percent (up to a maximum of 360 euros). So anyone who makes the full 1,800-euro personal contribution draws the maximum Grundzulage of 540 euros in full.

An important factor is the statutory minimum contribution of 120 euros a year. If your annual personal contribution falls below this threshold, your entitlement to the state subsidy is lost entirely and the allowance drops to zero euros. For a precise calculation of your personal entitlement and its effect on your future capital, our free subsidy calculator is available to you. You can find further background on the statutory conditions in our knowledge section. Please note that all calculations and projections mentioned are purely illustrative and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

4. The minimum personal contribution: the strict 120-euro threshold

While the old Riester system involved complicated calculations based on prior-year income and a base contribution of 60 euros, the new Altersvorsorgedepot simplifies the rules considerably from 2027. To be entitled to the state subsidy at all, savers must make a statutory minimum personal contribution of exactly 120 euros per calendar year^[2]. That works out to a monthly savings amount of just 10 euros. This threshold is deliberately set low so that people on lower incomes or those starting their careers can also access subsidised private retirement provision. It is nonetheless a strict statutory requirement that allows no leeway.

The zero-euro cut-off if you fall short

The law shows no leniency here: if the annual threshold of 120 euros is missed by even a single cent, the entire entitlement to state allowances for that contribution year is forfeited completely. In that case, the state subsidy is invariably cut to zero euros, and you receive neither the Grundzulage nor any Kinderzulage (the child allowance)^[2]. There is no proportional reduction if you fall short of the minimum personal contribution—it is a complete exclusion from the state subsidy. It is therefore of the utmost importance that you monitor your savings instalments continuously, especially if you make irregular payments or your income situation changes.

To help you avoid such costly miscalculations and set up your personal savings strategy correctly, we provide the subsidy calculator. With this source-based, interactive tool you can easily check how large your personal contribution needs to be to secure the full state support for your situation. The tool compares the different contribution tiers transparently and shows you exactly where the state allowances kick in and from what point you exhaust the maximum subsidy. Use this decision-making aid to put your private retirement provision on a solid mathematical footing from the outset.

5. Worked example: full vs. reduced Grundzulage compared

Determining the state subsidy for the new Altersvorsorgedepot from 2027 follows a clear and reliable principle: the amount of the Grundzulage is tied directly to your own contribution. The often-criticised, highly complex Riester procedure, in which the allowance was calculated depending on the previous year's gross income and reduced proportionally if the contribution was too low, is now a thing of the past. The legislator now rewards every euro paid in directly, within a fixed tiered model^[1]. That means maximum transparency and planning certainty for you from the very first euro.

As the comparison shows, the reduction mechanics of the new subsidy can be reduced to simple proportionality. Anyone who wants to receive the maximum state top-up of 540 euros a year must pay the optimal annual personal contribution of at least 1,800 euros into the account. If you pay in less, the allowance falls in line with the tiered rule. One important threshold here is the statutory minimum personal contribution of 120 euros a year^[1]. If this base amount is not reached, the entire entitlement to state allowances for that contribution year is lost with no replacement. For a precise calculation of your individual subsidy situation, you can easily use the interactive subsidy calculator, which we provide on our neutral knowledge section.

Legal notice: these calculations and scenarios are for information and illustration purposes only. They do not constitute investment advice or a financial service within the meaning of § 1 Abs. 1a Nr. 1a KWG. The actual level of the subsidy, as well as the individual return achieved, depend on your personal circumstances, future statutory conditions and the specific product chosen.

6. Requirements for receiving it: who is directly entitled to the subsidy?

Direct eligibility is the key factor in receiving the state subsidy for the new Altersvorsorgedepot. In principle, everyone compulsorily insured under the German statutory pension insurance is directly entitled. This includes employees, apprentices, recipients of Bürgergeld or sickness benefit, and self-employed people who are compulsorily insured. Civil servants, judges and members of the armed forces also remain part of this group as before, provided they give the required consent to data transmission. However, one of the most important reforms from 2027 concerns the remaining self-employed people and freelancers, who were often excluded from Riester subsidies in the past unless they had indirect entitlement through a spouse.

From 2027, this group is expanded significantly, so that self-employed people can become directly and unrestrictedly entitled. This removes the previous bureaucratic hurdles for self-employed people, who may now claim state allowances for their Altersvorsorgedepot independently. To receive the allowances, you always need to pay at least the statutory minimum personal contribution of 120 euros a year; the full allowance of up to 540 euros requires an own contribution of 1,800 euros a year. For a well-founded assessment of your personal eligibility and the optimal contribution level, our subsidy calculator is a good starting point. It calculates your exact subsidy rate based on your data.

Please note that entitlement is checked continuously for as long as the allowances are granted. Anyone who is not directly entitled may, in certain circumstances, still be eligible via a spouse's indirect entitlement, provided the spouse actively pays into their own contract and meets the conditions^[1]. If you are unsure about your personal status, we recommend seeking qualified advice. Legal notice: this overview does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

7. Distinctions and additions: Kinderzulage and Berufseinsteiger-Bonus

The state subsidy for the new Altersvorsorgedepot is made up of several legal components that complement each other and must be strictly distinguished. While the annual Grundzulage of up to 540 euros forms the foundation, savers can also claim additional financial top-ups. These extra subsidies do not depend on the amount of your personal Grundzulage; instead, they are calculated separately and credited to the account, provided the statutory minimum personal contribution of 120 euros a year is made^[1].

• Kinderzulage (the child allowance): for every child for whom you are entitled to Kindergeld, you receive an allowance of up to 300 euros per calendar year. This subsidy is paid on a one-to-one basis, so that for every euro you pay in yourself, one euro of state top-up flows in, until the maximum is reached.
• Berufseinsteiger-Bonus (the career-starter bonus): young savers who have not yet turned 25 at the time the contract is concluded receive a one-off bonus payment of 200 euros, to specifically support an early start to building retirement savings.

All the subsidy components flow directly into your Altersvorsorgedepot and strengthen the long-term compound-interest effect on the invested ETFs or funds. To calculate precisely how the allowances are distributed for your personal family situation, the interactive subsidy calculator is available to you. With this digital tool, you can transparently simulate different life scenarios and contribution patterns.

Please note that all calculations and mathematical examples in our guides are for illustration only. This does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. For reliable financial planning, we recommend that you review the neutral information in our knowledge section thoroughly, or seek qualified professional advice.

8. Next steps: calculate your subsidy and make the right decision

The legal framework for the new Altersvorsorgedepot from 2027 has been set, but the concrete outcome depends heavily on your personal circumstances and income. With this reform, the Federal Ministry of Finance has ushered in a new era of subsidised private retirement provision that, by dropping rigid contribution guarantees, opens up considerably higher-return investment options for savers^[1]. To get the most out of the state Grundzulage of up to 540 euros a year and avoid reductions, you should first work out your individual subsidy entitlement precisely. On our platform, the knowledge section, you will find all the mathematical and legal background presented neutrally and on a source basis. For a concrete simulation tailored to your data, our interactive subsidy calculator is available to you.

• Step 1: use the subsidy calculator to precisely determine your expected state allowances and the exact minimum personal contributions. Please note: these example calculations and simulations are for illustration of the model only and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.
• Step 2a for independent decision-makers: compare suitable account providers and low-cost neobrokers through our provider comparison. This route lets you open your subsidised securities account yourself and benefit from low product fees.
• Step 2b for those seeking advice: use our independent advice service if you prefer personal support from licensed financial experts, or want to clarify complex points of detail, such as switching from an existing Riester contract, in a direct conversation.

Whichever of these two routes you take, our shared goal is to give you source-based, reliable and completely neutral orientation within Germany's modernised retirement system. Whether you invest directly through digital platforms as an independent investor, or seek a qualified conversation with an independent adviser, remains entirely up to your personal preference. With sound facts and the right digital tools, you can turn regulatory complexity into a confident, tailored decision for your private retirement provision.