Switching from Riester step by step: how the transfer works

Tilman Freyenhagen

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

The reform from 2027: why the switch to the Altersvorsorgedepot becomes possible

The switch from an existing Riester-Rente to the new Altersvorsorgedepot takes place as a state-subsidised, and therefore subsidy-neutral, transfer. To do this, you open an Altersvorsorgedepot with a new provider and issue a corresponding transfer instruction, after which the existing capital and your entire state allowance history are transferred. The law reforming private retirement provision, coming into force on 1 January 2027, creates, for the first time, the statutory basis for moving accumulated Riester savings directly into the new account model without tax disadvantages^[1]. A decisive advantage: the law abolishes the previous requirement for a contribution guarantee and mandatory annuitisation, opening up far higher return prospects on the capital market for you.

For many of the millions of Riester savers in Germany, this reform raises the fundamental question of how the switch is actually carried out. To secure the retention of all previous allowances and tax benefits, a regular cancellation of the old contract is strongly to be avoided. Instead, you must follow the formal transfer route. In our knowledge section, we guide you step by step through this structured process, which essentially breaks down into three core steps.

1. Open an account: you choose a licensed account provider and open a new, certified Altersvorsorgedepot with them.
2. Instruct the transfer: you submit an official transfer instruction to your new provider, containing all the details of the old Riester contract.
3. Wait for processing: the new provider requests the balance and the allowance history directly from your previous provider and books the capital into the new account.

In practice, this officially supervised process usually takes a few weeks, but it reliably protects you from a tax-damaging use of your retirement assets. Because the financial impact of the switch depends heavily on your individual contract details and the remaining term, a mathematical check beforehand is worthwhile. With our subsidy calculator, you can transparently calculate the potential cost advantages and the expected final capital of a switch, so you can make an informed and secure decision for your financial future.

Transfer instead of cancellation: why you should never terminate your Riester contract

Anyone considering a switch faces a pivotal decision: the existing contract must never be formally cancelled in order to pay the capital into the new Altersvorsorgedepot. A classic cancellation counts, for tax purposes, as what's known as a harmful use^[1]. As a result, you have to repay in full all the allowances received in the past, as well as the tax benefits, to the state^[1]. Only through an official, subsidy-neutral transfer does your entire state allowance history remain seamlessly intact, while your savings balance is moved into the more profitable account.

• Cancellation (harmful use): you lose all state allowances and must repay all the tax benefits used in past years to the tax office.
• Subsidised transfer (subsidy-neutral): the accumulated capital moves, together with your complete tax and allowance history, directly to the new provider of the Altersvorsorgedepot.
• Cost impact: on cancellation, often only a fraction of the capital remains, whereas on transfer, the switching fees charged by the old provider are capped by law.

To initiate this process without errors, you instruct your new account provider directly to collect the capital. They handle the transfer formally with your previous Riester provider, so you don't have to deal with the bureaucratic communication yourself. For a precise calculation of how much capital is effectively transferred after any switching fees, and how the switch plays out over the long term, using our subsidy calculator is recommended. Our knowledge section also has detailed guides on the statutory deadlines and lock-in periods of your old contract. Because Riester contracts often contain complex clauses, careful analysis protects you against unforeseen costs.

Step 1: choosing a suitable provider for your Altersvorsorgedepot

The subsidised transfer from a Riester contract into the new Altersvorsorgedepot (AVD) begins with the targeted selection of a licensed account provider^[2]. Since the reformed system, from 2027, dispenses with the requirement for a contribution guarantee, the quality of the provider moves to centre stage. The choice of account platform will determine how flexibly you can invest your retirement assets going forward. Our knowledge section offers you a manufacturer-independent, detailed guide on this. To maximise your long-term return, you should analyse different platforms closely before opening an account.

For the targeted selection of the optimal account provider, a structured comparison is essential. You should above all watch for low account fees and a wide selection of savings-plan-eligible exchange-traded funds (ETFs). A useful tool on our Vorsorgedepot-Lotse platform is our criteria-based provider comparison, which helps you transparently compare providers' terms and provides direct account-opening links. In addition, you can use the subsidy calculator to work out the exact financial advantage of the switch.

Please also note, when choosing, that the transfer from your old contract must be tax-neutral and subsidy-neutral^[3]. To ensure this, the new account may only be opened once the provider is officially certified for the Altersvorsorgedepot. If you are unsure about the tax aspects or the right investment strategy, you can use an independent advice service. A qualified partner from Vorsorgedepot-Lotse accompanies you personally throughout the entire process, so your accumulated capital moves seamlessly into the new, higher-return structure.

Step 2: submitting the transfer instruction to the new account provider

The switch from a Riester-Rente to an Altersvorsorgedepot takes place through a subsidised transfer, which you initiate via your new provider. As soon as your new account is opened, you submit a formal transfer instruction there, instead of cancelling your old contract yourself. This way, the legislator ensures that your accumulated capital, including your entire state allowance history, is transferred without harming your subsidy status^[1].

Once it receives your transfer authorisation, the new provider takes over direct handling with your previous insurer or fund company. The existing balance is liquidated and transferred to the new account. Before the switch, it's advisable to check the exact financial impact and potential cost savings mathematically, on a scientific basis, using digital tools such as the subsidy calculator. That way, you retain full transparency over your future pension development and the reduction in the total cost ratio.

1. Fill in the transfer form: you enter your personal details, your previous Riester contract number and the details of the new Altersvorsorgedepot into the document provided.
2. Grant authorisation: with your signature, you authorise the new provider to request the capital from the old insurer and coordinate the tax-relevant transfer.
3. Observe deadlines: the previous provider must meet legally set deadlines for releasing the capital. Plan for a processing time of several weeks for the whole process.
4. Confirm receipt: once the funds arrive successfully, you receive confirmation of the transferred balance and of the receipt of your previous state allowances.

Please note that your previous provider may charge a legally capped switching fee for transferring the capital. However, these costs are usually recouped quickly through the elimination of the high ongoing fees of the old Riester policy and the better return prospects in the modern Altersvorsorgedepot, as comparative analyses and reports in the knowledge section show. If you are unsure about the optimal approach or the tax finer points, the independent advice service offers a reliable, structured route to licensed, independent experts.

Step 3: review and release by the previous Riester provider

Once the transfer instruction has been submitted via your new provider, responsibility passes to your previous Riester provider. They examine the switching request in detail, initiate the statutory processing and prepare the liquidation of the capital tied up in the contract. Because this is a state-subsidised transfer, this step is strictly regulated bureaucratically. The main aim of the review is to ensure that the capital flows directly into a certified Altersvorsorgedepot. Only this way does the process remain subsidy-neutral, consistently preventing a loss of your previous state allowances and tax benefits^[4].

Reviewing the legal requirements

During this review phase, the transferring institution verifies the contract details and the legal admissibility of the transfer. There is close exchange with the Zentrale Zulagenstelle für Altersvermögen (the central allowance office for retirement assets), so that the existing subsidy history is documented without errors and passed on to the new Altersvorsorgedepot^[5]. Once approval is granted, the provider liquidates the assets held in the old contract. That means insurance or fund balances are converted into cash to prepare the transfer process. A deadline of three months to the end of the quarter generally applies for this processing^[5]. If you are unsure about your individual deadlines, you can use an independent advice service to request personal guidance and avoid mistaken cancellations.

Statutory cost limits for the transfer

A key aspect of the release by the previous provider is the switching costs. To protect Riester savers from excessive fees, clear statutory ceilings apply to the transfer from the start of the reform in 2027^[6]. The fee structure depends largely on the previous term of your old contract. To calculate the long-term benefit of such cost reductions, the subsidy calculator is available to you on our portal.

Step 4: capital transfer and takeover of the state subsidy history

The actual capital transfer from your old Riester contract to the new Altersvorsorgedepot proceeds entirely tax-neutrally. Once your transfer instruction has been processed, the entire released savings balance flows directly to your new provider, without capital gains tax or withholding tax being incurred. At the same time, the transferring provider reports the transfer to the Zentrale Zulagenstelle für Altersvermögen (ZfA), so that your entire state subsidy history is carried over seamlessly to the new account.

No taxes are due for you on this switch, since it is a legally regulated, subsidy-neutral transfer^[1]. However, you should watch the deadlines and fees. Under current guidelines, the switch is free of charge for you after a contract term of five years^[7]. With a shorter term, the transferring provider may charge a switching fee of up to 150 euros. The actual transfer process between the institutions usually takes a few weeks.

• Direct capital transfer: the previous provider liquidates the Riester balance and transfers the full amount directly into your new Altersvorsorgedepot.
• Notification to the ZfA: the change of provider and the transferred assets are reported to the Zentrale Zulagenstelle für Altersvermögen, to secure your entitlement.
• Protection of the allowances: because the capital stays within the state-subsidised system, the process is subsidy-neutral and you don't have to repay allowances already received.
• Cost cap on switching: the switch is free of charge after a five-year contract term; for a shorter term, a statutory fee cap of 150 euros applies.

To calculate how the transfer affects your retirement provision in the long term, you can use the subsidy calculator. For detailed information on the tax transition rules, our knowledge section is available to you. If you would like support in making the decision, our independent advice service helps you get in touch with a qualified, neutral expert (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

Deadlines and fees: what processing time you should expect

The switch from an existing Riester-Rente to the new Altersvorsorgedepot takes place via a state-regulated, so-called subsidy-neutral transfer. This process ensures that all allowances and tax benefits accumulated so far are fully preserved. Such a change of provider, however, does not happen overnight. In practice, you should expect a processing time of several weeks up to a few months. The exact duration depends on the processing times of the transferring provider and the technical handling between the financial institutions involved. It is important that you never cancel your old contract yourself, but instead initiate the formal transfer instruction through your new account provider^[1].

• Notice periods of the previous provider: depending on the terms of your existing Riester contract, certain notice periods apply, which often take effect at the end of a quarter.
• Duration of the technical processing: the physical transfer of the capital and the coordination between the institutions usually takes four to eight weeks.
• Role of the central allowance office: the transfer of the personal allowance history must be recorded by the state allowance office, which involves additional administrative effort.

Besides the time limits, fees play a decisive role for Riester savers. The Altersvorsorgereformgesetz (pension reform act) provides a clear statutory switching-cost cap to protect consumers. Accordingly, the transferring provider may charge a fee of up to 150 euros for the capital transfer, provided the contract had run for less than five years at the time of the switch. If your Riester contract has already exceeded this five-year period, the transfer to the new Altersvorsorgedepot is even legally guaranteed to be free of charge for you. To calculate individually whether a switch pays off despite any switching fees, the subsidy calculator on our neutral information portal helps, transparently comparing the exact cost effects.

Decision aid: when the switch pays off for you personally

Transferring your Riester balance into the new Altersvorsorgedepot (AVD) should not be a hasty gut decision. Because the reform comes into force from January 2027, the legitimate question of the long-term profitability of a switch arises for millions of Riester savers. Such a step is usually especially worthwhile if your remaining time until retirement is still at least ten to fifteen years. Over that period, you can put the expected higher equity returns of the new account to optimal use for the compound-interest effect, while the classic, often inflexible Riester contracts, through their rigid contribution guarantees and high administration fees, drastically limit the return prospects over decades^[1]. Anyone close to retirement, on the other hand, may benefit more from the existing guarantees of the old contract.

For a precise, source-based analysis of your individual situation, using modern digital tools is recommended. With the subsidy calculator, you can transparently and free of charge compare the state subsidy, your expected final capital and the specific cost impact of a switch. In addition, our knowledge section offers deeper, BMF-backed guides on the special tax rules and the exact statutory framework of the transfer. Please note: every model calculation serves illustration purposes and does not constitute legally binding financial advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

For savers with complex contract constellations (for example, high accumulated child allowances, married couples with indirect subsidy eligibility, or contracts close to retirement), a purely digital decision is often not sufficient. In such cases, personal guidance can protect against mistakes. Through the independent advice service offered by Vorsorgedepot-Lotse, you get direct access to licensed, independent experts. They review your old contract individually, determine the exact allowance history and guide you competently through the entire subsidy-neutral transfer process, so that no state subsidy money is lost.