How much should I pay in to get the maximum subsidy?

Tilman Freyenhagen

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

Introduction and the contribution question at a glance

To get the maximum state subsidy for your Altersvorsorgedepot from 2027, you should pay in exactly 1,800 euros a year. This subsidised maximum contribution secures both the maximum basic allowance of 540 euros and the full tax benefit^[1]. The minimum own contribution required to qualify for the state allowances at all is 120 euros a year. These parameters are based on the enacted and promulgated Altersvorsorgereformgesetz (pension reform act).^[4]

The new subsidy system is defined by its independence from income, which marks a considerable simplification compared with the old Riester-Rente^[2]. The basic allowance is structured in two tiers: for the first 360 euros you pay in, you receive a subsidy of 50 percent, up to 180 euros. For every further euro up to the ceiling of 1,800 euros, the state grants an allowance of 25 percent, adding a further 360 euros. Contributions above this maximum can still be paid in, up to an annual limit of 6,840 euros, but they receive no further tax support or allowances.

To work out your personal subsidy rate and long-term final capital precisely, our interactive subsidy calculator is available on our portal. This tool calculates individually how allowances and tax benefits affect your payout phase. You'll find further legal and tax detail in the knowledge section. Please note: all calculations and figures are for information purposes only. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The allowance subsidy in detail: how you benefit fully with 360 euros and 1,800 euros

With the new Altersvorsorgedepot, the state is fundamentally simplifying private retirement provision in Germany. A transparent, two-tier allowance system replaces the complex Riester formulas. To get the maximum state support, you need to steer your annual own contribution strategically. The state subsidy is made up of two clearly defined tiers, set directly by your annual payment.

For the first 360 euros you pay into your account in the calendar year, the state grants an allowance of 50 percent, a contribution of up to 180 euros. Every further euro is subsidised at 25 percent up to a ceiling of 1,800 euros, bringing a further 360 euros of subsidy. If you make full use of this subsidised maximum contribution of 1,800 euros a year, you secure the maximum basic allowance of 540 euros in total. Note that an annual minimum contribution of 120 euros is required to receive any subsidy at all.

Alongside the direct allowance subsidy, you also benefit as a taxpayer from the special-expense deduction in your income tax return. As part of what's called the more-favourable-treatment test, the tax office automatically checks whether the tax relief works out better for you than the allowance alone. The ceiling for this tax deduction will in future be 1,800 euros plus the allowances you're entitled to, so up to 2,340 euros a year at most^[1].

To find out exactly how these subsidy tiers affect your personal tax and savings situation, you can use the interactive subsidy calculator on our portal. As a neutral knowledge section, we help you plan your optimal savings path transparently and on a data basis.

Important note: all calculations, tax effects and mathematical examples given are for illustration and orientation only, based on the current legal framework. They do not constitute tax or financial advice. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The minimum own contribution: why less than 120 euros brings no subsidy

Anyone who wants to benefit from the state allowances on the new Altersvorsorgedepot has to observe a statutory floor. The statutory minimum own contribution is exactly 120 euros per calendar year, equivalent to a monthly amount of 10 euros^[1]. This threshold is absolute: anyone who pays in less than this amount loses their entire entitlement to the state basic allowance, and any child allowances they'd otherwise be due, for that year. For do-it-yourself savers, this means that even small lapses in the savings rate can wipe out the entire year's state subsidy.

Low earners, career starters and part-time workers in particular should pay close attention. Unlike the old Riester-Rente, where allowances were reduced proportionally under certain conditions, the new system has no partial-allowance model for contributions below the 120-euro threshold when it comes to the minimum own contribution. Either the minimum payment is reached and the subsidy is calculated, or the entitlement lapses completely. The knowledge section offers detailed guidance on how to align your individual savings plan optimally with these statutory requirements.

To avoid unpleasant surprises at year end, it's advisable to set up a standing monthly savings plan of at least 10 euros. If you're unsure how your payments affect the exact size of your allowances, the subsidy calculator helps you work it out precisely. With this transparent tool, you calculate your optimal own contribution in moments, so you make the most of every state-subsidised euro. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The child allowance and the career-starter bonus: extra levers for the optimal savings rate

For families and young career starters, the new Altersvorsorgedepot offers particularly attractive incentives from 2027, acting as direct levers on your own savings rate. These state allowances reduce the own share you have to pay in yourself, while your total invested capital in the account grows through the state subsidy. For do-it-yourself savers in particular, who want to structure their retirement provision cost-efficiently, these allowances offer a risk-free additional return that flows directly into wealth building.

• The child allowance: for every child for whom you receive Kindergeld (state child benefit), you get a state allowance of up to 300 euros a year. From 2027, this is granted in proportion to your contribution. For every euro of own contribution you pay in, a full euro of allowance flows into your Altersvorsorgedepot. You secure the maximum amount of 300 euros once your own annual savings reach 300 euros per child.
• The career-starter bonus: savers who have not yet turned 25 when the contract is taken out receive a one-off bonus of 200 euros. To activate this extra head start for retirement provision, all that's required is paying the annual minimum own contribution of 120 euros.

These targeted state subsidies noticeably lower the financial barrier to getting started with capital-market-based wealth building. The allowances flow directly into your chosen ETFs or funds and work there as part of your long-term investment strategy. To find out exactly how these allowances affect your personal optimal savings rate and your tax situation, we recommend our interactive subsidy calculator. The tool works out precisely how you can generate the maximum subsidy under the current BMF guidelines with the least own effort^[1]. Please note: our model calculations are for information purposes only and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

The tax benefit: how special expenses of up to 1,800 euros lower your taxable income

The new state subsidy from 2027 combines direct allowances with an attractive special-expense tax deduction under section 10a of the Income Tax Act (EStG). When you pay contributions into your subsidised Altersvorsorgedepot, the tax office takes payments of up to 1,800 euros into account as special expenses as part of your annual income tax return^[1]. This special-expense deduction lowers your taxable income, which, depending on your personal marginal tax rate, results in a noticeable tax refund. To calculate in advance precisely which payment level is most worthwhile for you, the interactive subsidy calculator is available.

As usual, the tax office also runs an automatic more-favourable-treatment test for the Altersvorsorgedepot. In doing so, the tax authority determines whether the tax benefit from the special-expense deduction turns out higher than the state allowances already credited to you directly. If the tax benefit is greater, the difference is paid out to you directly as an additional tax refund. This mechanism benefits above all employees and self-employed people with a medium to high income, since their personal tax rate leads to substantial tax relief. If you're looking for deeper insight into the statutory rules, our Altersvorsorgedepot guides offer detailed explanations.

Note that contributions above the 1,800-euro threshold receive no further tax support, but can remain in the account as unsubsidised private saving. The following legal notice applies to the mathematical relationships shown here: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Unsubsidised saving in the Altersvorsorgedepot: when payments above 1,800 euros are worthwhile

Above the subsidised threshold of 1,800 euros, you can pay in up to 6,840 euros a year into the new Altersvorsorgedepot^[1]. While contributions up to 1,800 euros receive state allowances or tax benefits, every additional euro up to the statutory ceiling of 6,840 euros counts as unsubsidised saving. For discerning do-it-yourself savers, this raises a central question: is it worth investing additional capital in the Altersvorsorgedepot, or is a classic, flexible ETF portfolio the better choice for private wealth building?

The decisive advantage of unsubsidised saving within the Altersvorsorgedepot lies in the tax-free accumulation phase. Unlike a classic ETF portfolio, no annual advance lump-sum tax applies during the term. You can also restructure your portfolio, or sell and repurchase ETFs, without capital gains tax falling due immediately. The entire capital thus keeps working with compound-interest efficiency, until deferred taxation applies later in life. A conventional portfolio offers maximum flexibility for early withdrawal, but slows long-term growth through continuous tax deductions.

To work out the optimal path for your personal situation, our interactive subsidy calculator is available. With this tool, you calculate transparently the expected final capital and compare different scenarios for your long-term wealth building. You'll also find detailed background information on the BMF guidelines and tax rules in our Altersvorsorgedepot guides. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Table: contribution, allowance and tax benefit compared directly

For do-it-yourself savers who want to structure their retirement provision independently, understanding the maths of these state subsidy tiers is essential. If you pay in less than the statutory minimum contribution of 120 euros a year, your entitlement to any state allowance lapses completely for that calendar year. From this very first threshold, however, you already secure solid state support. To generate the maximum basic allowance of 540 euros a year, an annual own contribution of 1,800 euros is required, which corresponds to a maximally subsidised savings rate^[3]. The table below sets out these specific annual payment tiers and their respective subsidy effect transparently.

The figures shown in the table illustrate how own savings and state allowances interact in the Altersvorsorgedepot. The maximum amount claimed for tax purposes as a special-expense deduction always covers the sum of your own contribution and the allowance credited. Please note the legal notice: not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG. The actual tax relief from the special-expense deduction is determined by the tax office as part of your tax return, taking your personal income tax rate into account.

Since the optimal contribution level depends heavily on individual circumstances such as your income, possible eligibility for child allowances, or the one-off career-starter bonus, precise mathematical calculation is advisable. With the interactive subsidy calculator, you can digitally simulate different payment levels to calculate your expected subsidy rate and long-term final capital exactly. In-depth, source-based guides on the tax framework and statutory changes are also available at any time in the knowledge section. This lets you, as an informed do-it-yourself saver, make a well-founded decision for your wealth building.

How to find your personal optimal contribution: a guide using the subsidy calculator

The optimal annual payment into the Altersvorsorgedepot depends heavily on your individual life situation and income. While an annual minimum contribution of 120 euros is required to be eligible for the subsidy at all, you only make full use of the maximum special-expense deduction at an annual own contribution of 1,800 euros. Contributions that exceed this threshold are no longer directly subsidised or tax-deductible, but can still accumulate tax-free within the account. To work out the exact mathematical intersection of maximum state allowance and optimal tax relief for your personal situation, an interactive tool is available on our portal.

With the digital subsidy calculator tool, you can simulate the state subsidy without any hassle. In line with the statutory requirements of the Federal Ministry of Finance, all relevant parameters are taken into account here, such as the percentage basic allowance of up to 540 euros on an own contribution of 1,800 euros, as well as the optional career-starter bonus of 200 euros^[1]. The tool runs an automatic more-favourable-treatment test between the allowance amount and your individual tax saving, and compares the subsidised account directly with a conventional, unsubsidised ETF savings plan. Please note the legal notice: the calculations are for illustrative purposes and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

1. Enter your current gross income and your employment status into the input form.
2. Record the number of children for whom you receive Kindergeld, to add the allowance of up to 300 euros per child.
3. Adjust your planned savings contribution and compare the monthly net cost after deducting the tax benefits.
4. Read off the calculated optimal contribution, to make ideal use of the maximum special-expense deduction of 1,800 euros a year.

Once you've worked out your personal target amount, the Vorsorgedepot-Lotse portal guides you towards practical implementation. Two equally valid, neutral paths are open to you here. If you'd like to manage your retirement provision yourself, the provider comparison tool helps you find the optimal account provider, while the knowledge section lets you go deeper into all the tax details. If, on the other hand, you'd prefer personal advice tailored to your life planning, the independent advice service arranges free conversations with licensed, independent financial advisers through our main portal.