Will my Riester-Rente contract be converted automatically?

Tilman Freyenhagen

Published on 25 July 2026 · Updated on 7 August 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

The reassurance up front: no automatic switch in 2027

Existing Riester-Rente contracts are not automatically converted into a new Altersvorsorgedepot as part of the reform of private pension provision on 1 January 2027. If you already have a Riester-Rente contract, it continues unchanged and enjoys full statutory Bestandsschutz. Any transfer of contract assets, or a switch to a new pension product, happens solely on your own, voluntary initiative. You therefore do not need to worry at all that your product provider will convert or dissolve your existing contract without your consent.

Statutory Bestandsschutz in detail

The reform law guarantees contractual continuity to all savers who took out their contract before the reform came into force. Your existing contract terms, guaranteed minimum benefits and accumulated allowances all remain fully intact. If you simply want to continue your existing Riester-Rente contract unchanged, this creates no organisational effort for you whatsoever. You do not need to make any declarations either to the provider or to the ZfA (Zentrale Zulagenstelle für Altersvermögen, the central pension allowance office).

• Legal Bestandsschutz: existing contracts permanently keep their previous terms, guarantees and state allowances.
• No automatic transfer: no contract balance may be moved without your explicit written consent.
• Full freedom of choice: whether you keep paying into your existing contract, make it premium-free, or switch to the new Altersvorsorgedepot is entirely up to you.

No rush when it comes to setting your personal course

Because your existing contract is securely protected, you do not need to make any hasty decisions before the cut-off date in 2027. The legislature grants you the right to flexibly review, even years after the Altersvorsorgedepot launches, whether a switch makes sense for your personal savings phase. There is no need to rush, since all options remain fully open to you even after the reform.

The fear of a forced switch is therefore unfounded. You can take the time you need to weigh up whether waiting with the familiar guarantee structure, or making use of the new return potential, better suits your individual life planning. Anyone wanting to carefully assess whether keeping their Riester-Rente or switching is worthwhile will find source-based, neutral guidance with us, free of any sales pressure.

Statutory Bestandsschutz: what happens to your contract

In the discussion around the reform of private pension provision on 1 January 2027, a common worry is that existing Riester-Rente contracts will be dissolved automatically or shifted into the new Altersvorsorgedepot. We can state clearly at this point: there is neither a forced conversion nor an automatic cancellation. The law guarantees unrestricted, statutory Bestandsschutz for all contracts concluded by the end of 2026. If you do nothing, your Riester-Rente contract continues without interruption and under the familiar terms.

The core guarantees of statutory Bestandsschutz

The legal framework ensures that the introduction of the Altersvorsorgedepot creates no disadvantages whatsoever for your existing contracts. The agreed contract structure, the state subsidy and the entitlements you have accrued all remain fully intact. In concrete terms, this means for you:

• Continuation of the contribution guarantee: the contribution guarantee promised in your existing contract continues to apply unchanged.
• Preservation of all allowances and tax benefits: all state allowances and tax refunds already credited stay untouched. Future contributions to the existing contract also continue to be subsidised under the previous subsidy system.
• Unchanged savings plan: your agreed monthly contributions or special payments keep flowing into the chosen product without interruption.
• Guaranteed pension factors: if your contract includes fixed pension factors or calculation bases for the payout phase, these remain binding for the entire term.

You are therefore never obliged to take any action. The new Altersvorsorgedepot merely broadens the state-subsidised range and offers an additional option for savers seeking more flexibility or higher-return forms of investment. Anyone who values the security of their existing guaranteed contract, on the other hand, can continue it without restriction until retirement. Whether a voluntary switch could make economic sense for you can be assessed individually, based on your remaining term and contract costs.

Why many savers fear an automatic switch

Around 15 million holders of Riester-Rente contracts in Germany are asking themselves, ahead of the launch of the new Altersvorsorgedepot in 2027, whether their savings will be converted automatically. The clear statutory answer is: no, there is no forced conversion and no automatic transfer. All existing contracts enjoy full statutory Bestandsschutz and, if you wish, continue unchanged. Nevertheless, the reform of subsidised private pension provision is causing considerable uncertainty among many savers.

These fears arise mainly from three intertwined factors: often misleading media coverage about the classic Riester-Rente being replaced, changed subsidy structures from 2027, and upcoming information letters from product providers. When insurers and banks inform customers about the legal framework of the reform, consumers quickly get the impression they are under pressure to act. In reality, however, these notices serve only transparency and do not prepare any automatic transfer.

The three main reasons for the current uncertainty

• Reform coverage in the media: terms such as "Riester successor" or "system change" wrongly create the impression that existing contracts will be automatically replaced on the 2027 cut-off date.
• Providers' disclosure duties: letters from insurers and banks announce new tariff options, which customers often misunderstand as a call for a forced switch.
• New subsidy logic: the change to the state contributions suggests that existing contracts might lose their subsidy without switching — which, because of the statutory transitional rules, is not the case.

To be clear: without any active action on your part, your contract remains exactly as you took it out. A switch to the Altersvorsorgedepot always requires an explicit decision of your own and a formally applied-for transfer. Anyone who wants to keep their existing contract therefore does not need to fear any unwanted changes to it.

Option 1: keep paying into your Riester-Rente contract unchanged

Your existing Riester-Rente contract is not automatically switched as part of the reform from 2027. The legislature guarantees unrestricted Bestandsschutz for all existing contracts concluded before the cut-off date. That means: you can continue your Riester-Rente as usual, keep paying into it monthly, and continue to claim the state subsidy.

Security through the contribution guarantee and the contractual guaranteed rate

Staying in your existing contract is a fully valid option, one geared above all towards maximum security. Unlike the return-oriented Altersvorsorgedepot, the existing contract protects the capital paid in through the agreed contribution guarantee. All the own contributions you have made, as well as all state allowances, remain guaranteed at the start of the payout phase. On top of that, you lock in the guaranteed interest rate that applied at the time you originally took out the contract.

• Savers close to retirement: with only a few years of contribution phase remaining, protecting the wealth already built up from short-term fluctuations in value comes first.
• Security-minded investors: people with very low risk tolerance value guaranteed capital preservation over market-driven fluctuations.
• Holders of older contracts with a high guaranteed rate: existing contracts with a high contractual guaranteed interest rate offer a fixed return that newer product forms often no longer provide.

If you want to continue your contract unchanged, there is no immediate action required on your part. The contract continues under the agreed terms. Please note that all calculations and comparisons are purely illustrative and do not constitute financial advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.

Option 2: make the contract premium-free and let it rest

If you do not want to pay any further contributions into your existing Riester-Rente contract for the time being, you do not have to cancel it or necessarily move it into a new product. Every legally certified pension contract guarantees you the statutory right to suspend contribution payments at any time and let the contract rest. With this kind of premium-free status, the wealth accumulated so far — including all state allowances received and the accrued returns — stays fully protected in the contract account. Simply no new own contributions flow in, and consequently no further ongoing allowances either. This option gives you maximum flexibility: the existing capital continues to earn interest or develop within the existing contract framework, while from 2027 you can build up a new Altersvorsorgedepot in parallel, or take the time to realign your personal pension strategy.

When does making the contract premium-free make sense as a strategy?

• Full preservation of the subsidy so far: state allowances and tax benefits already credited stay untouched and, unlike with a cancellation, do not have to be repaid to the state.
• Locking in contractual guarantees: contracts with higher guaranteed interest rates or favourable historical pension factors preserve that commitment for the balance already accumulated.
• Opening up new paths from 2027: you keep open the option of directing future savings instalments into a more profitable Altersvorsorgedepot, without having to hastily dissolve your existing contract.
• Straightforward handling: suspending contributions only requires a written or digital notice to your existing provider.

Note, however, that even during a premium-free period, contractually agreed administration costs charged by the provider can still apply, reducing the dormant balance. We therefore recommend checking the fee structure of your existing contract carefully in advance. Letting the contract rest is ideal as an interim step, allowing you to compare market offers or seek independent advice without time pressure. (Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

Option 3: switching the subsidy system within your existing contract

Alongside simply continuing your existing contract, or transferring it fully to a new Altersvorsorgedepot, there is a third path: staying in your existing Riester-Rente product while switching to the new subsidy system at the same time. Under the guidelines of the Bundesfinanzministerium (BMF, the Federal Ministry of Finance), you do not need to cancel your existing provider or switch products for this. A simple declaration to your contract provider is enough to move future contribution payments onto the new state subsidy logic. This lets you benefit from the modified allowance structures without having to give up your existing guarantee structures or contract terms.

Framework and process for the system switch

When you switch the subsidy system, the balance accumulated in the contract, as well as the original product terms, remain fully intact. The decisive change concerns only the calculation of the state contributions from the point of the switch onward. Instead of the previous fixed Grundzulage and Kinderzulage, the reform's new subsidy model applies to your ongoing own contributions. If you decide to leave your Riester-Rente contract in the old system, or only adjust the subsidy, no additional switching or set-up fees apply, since no balance is transferred.

• Product structure stays untouched: the existing capital protection and the agreed pension factors of your contract continue to apply unchanged.
• No need to switch provider: the switch takes place directly with your existing provider, through a written or digital declaration.
• Adjustment of the subsidy: future own contributions are subsidised under the new tax subsidy rules.
• No transfer costs: because no capital transfer takes place, neither cancellation fees nor administration charges for an account switch apply.

This option is especially suited to savers who are happy with the guarantee elements of their current provider but want to benefit from the future state subsidy rate. Please note that, once made, a switch to the new subsidy system is irrevocable: the legislature does not provide for a step back into the original subsidy logic.

Option 4: actively switching to the new Altersvorsorgedepot

If you are unhappy with the return performance of your existing Riester-Rente contract, or want to specifically benefit from market-based returns, you can actively switch to the new Altersvorsorgedepot from 2027. With this orderly contract switch, you transfer your accumulated own capital, as well as all state allowances, into the new account product, without having to repay the existing subsidy on a tax-harmful basis. All Riester allowances received remain fully intact throughout.

Statutory cost cap and consumer-friendly switching rules

One key point of the statutory reform concerns the consumer-friendly switching mechanism. To reduce hurdles and minimise barriers to switching, the Bundesministerium der Finanzen (Federal Ministry of Finance) has set clear caps on the fees that can arise. This ensures the capital paid in is not eaten away by excessive switching fees.

• Maximum switching fee: the receiving provider may charge a one-off administration fee of no more than 150 euros for transferring the assets and opening the account.
• No charge from the existing provider: if your existing pension contract has been running for at least five years, the transferring provider must allow the switch completely free of charge. You can find a detailed breakdown in our guide to switching costs.
• Spreading of set-up costs: going forward, new set-up costs must be spread over the entire contribution phase, to effectively prevent another high one-off charge when switching provider.
• No more guarantee costs: with the previous 100 percent contribution guarantee dropped, cost-intensive hedging mechanisms fall away, so your savings contributions can flow directly into return-oriented ETF portfolios.

Actively switching is especially suitable for savers with sufficient remaining time until retirement, since the return advantage of a broadly diversified ETF investment quickly offsets the one-off switching fee. We recommend comparing the individual terms and cost structures neutrally before applying. (Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

How to make the right decision for your pension provision

Because your Riester-Rente contract is not switched automatically, the full freedom of decision stays with you. To work out whether staying in your current tariff, making it premium-free, or switching to the new system makes economic sense, a structured approach is advisable. Thanks to the statutory Bestandsschutz for existing contracts, you have plenty of time to analyse your personal situation calmly, using objective criteria.

Step-by-step guidance for reviewing your own contract

• Assess the cost structure: check the effective cost ratio of your existing Riester-Rente contract. High administration costs often significantly reduce the overall return over the contribution phase.
• Work out your subsidy rate: record your annual own contributions and state allowances. Using the subsidy calculator, you can calculate the expected subsidy effect and possible differences in final capital.
• Take your investment horizon into account: the longer the remaining time until retirement, the more weight the return potential of growth-oriented securities investments carries.
• Clarify how much support you want: decide whether you want to manage your portfolio yourself digitally, or prefer qualified guidance.

For your individual guidance, we offer you two transparent paths. Self-directed savers use the subsidy calculator for a data-based analysis. For complex questions, or if you want a comprehensive review, we recommend making use of an independent advice service before switching. It also helps to weigh up whether a purely online account or personal advice is more appropriate for you. That way, you make a well-founded decision without time pressure. (Note: all calculations and information here are for guidance. Not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)