Wohn-Riester and the Altersvorsorgedepot: what applies?

Tilman Freyenhagen

Published on 14 June 2026 · Updated on 7 August 2026 · Managing Director & Partner, Alsterspree Verlag GmbH

The integration of the Eigenheimrente into the 2027 reform

The reform of private retirement provision brings far-reaching changes from 1 January 2027. The enacted Altersvorsorgereformgesetz (retirement provision reform act) affects not only the new, securities-based Altersvorsorgedepot, but also integrates the existing Eigenheimrente - better known as Wohn-Riester^[1][5]. Anyone saving for a home or repaying a loan will be subsidised under a new, simplified system from 2027, and can continue existing contracts or switch^[1].

Integration into the new system and changed allowances

With the transition to the new system, Wohn-Riester savers benefit one-to-one from the new allowance structure^[1]. For every euro you save yourself up to 1,800 euros a year, the state pays a contribution: for the first 360 euros you get 50 cents per euro (up to 180 euros), and for every further euro up to the ceiling, 25 cents (up to 360 euros)^[1]. This results in a maximum annual Grundzulage of 540 euros (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)^[1]. In addition, the complicated calculation of a minimum own contribution no longer applies.

Existing Riester savers enjoy strict grandfathering: contracts concluded before 2027 continue under the old rules if you wish^[1]. Switching to the new subsidy system or transferring is possible, however. Our knowledge section has further details on the reform. Because the choice between tying your money to a property and a flexible securities investment has far-reaching financial consequences, advice via our independent advice service can offer valuable guidance.

The new subsidy system: the same rules for Wohn-Riester and the Altersvorsorgedepot

From 1 January 2027, the Eigenheimrente (Wohn-Riester) is integrated into the new subsidy system, so identical allowance rules apply to both forms of retirement provision^[1]. A direct transfer of Riester capital already tied up in a property into a new Altersvorsorgedepot is usually not possible, because the subsidy is already embedded in the home. To work out the optimal interactions for your personal situation, our subsidy calculator is available to you.

The allowance subsidy from 2027 at a glance

• Grundzulage of up to 540 euros a year: for the first 360 euros of annual contributions, you receive a 50 percent subsidy, and for every further euro up to 1,800 euros, an additional 25 percent.
• The complex minimum own contribution is abolished: the previous link to 4 percent of your income subject to statutory pension insurance no longer applies. Only a flat minimum contribution of 120 euros a year remains.
• An attractive Kinderzulage for families: for every euro paid in, the state grants a 1-to-1 subsidy of up to 300 euros per child.

Effects on the Wohnförderkonto and taxation

Aligning the subsidy makes the Eigenheimrente much simpler for prospective homeowners. A key benefit of the reform concerns deferred taxation: the previous annual two percent increase to the Wohnförderkonto is abolished completely^[1]. In addition, the taxation period in the retirement phase is shortened from the previous 20 years to just five years^[1]. Once these five years have passed, there is no longer any tax link to the subsidised property, giving you considerably more flexibility if you later sell or let it. On top of that, the subsidy is now also open to the self-employed and freelancers, who were previously excluded from classic Riester saving^[1]. Our neutral Altersvorsorgedepot guides examine these tax relief measures in detail.

All financial illustrations and comparisons are for illustrative purposes only and are not to be understood as investment advice (not investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG).

The Wohnförderkonto: the end of the unpopular two percent interest rate

The Wohnförderkonto is the central accounting mechanism of the state-subsidised Eigenheimrente. Until now it worked like a virtual booking account: all subsidised repayments and allowances were recorded there and credited with notional interest of two percent a year, to represent the theoretical benefit of rent-free living in retirement. This notional increase often led to an unexpectedly high tax burden in the retirement phase, because the accumulated amount has to be taxed on a deferred basis. With the Altersvorsorgereformgesetz from 2027, the federal government abolishes this unpopular two percent interest rate completely, which means substantial financial relief for many Wohn-Riester savers^[1].

Abolishing this notional interest massively reduces the tax base in retirement. Until now, the annual compound-interest effect artificially inflated the Wohnförderkonto over the decades. A further benefit of the reform is the drastic shortening of the taxation period in the retirement phase, from the previous twenty years to just five years^[1]. Once this period has elapsed, any tax link to the subsidised property no longer applies. This considerably increases your flexibility if you later sell or let the property, since rigid retroactive-taxation rules no longer apply.

Because the tax interactions are highly complex in individual cases, a detailed review is advisable. To analyse how the reform affects your assets, Vorsorgedepot-Lotse offers you well-founded support. Our knowledge section has in-depth guides on every aspect of the switch. If you are looking for a tailored solution for your Eigenheimrente and your future retirement provision, we are happy to arrange qualified, personal advice through our independent partners.

The shortened taxation phase: more flexibility for your property

For Wohn-Riester savers, the new retirement provision system brings one of the most noticeable pieces of relief of all from 2027: deferred taxation in the retirement phase is fundamentally reformed^[1]. Until now, owners who built up their equity or repayment loan with state subsidy had to pay tax on the notional Wohnförderkonto gradually over a period of up to 20 years. From 1 January 2027, this tax reference period is drastically shortened to just five years^[1]. This means enormous administrative relief in retirement and ensures that the state-subsidised property becomes entirely free of the special tax rules of the retirement phase much sooner. Our Altersvorsorgedepot guides have further details on the whole reform structure.

Shortening the period to five years brings a pivotal benefit: once these five years have elapsed, any tax link to the subsidised property ends completely^[1]. Under the old conditions, anyone wanting to sell their house, let it, or downsize ran into narrow legal limits and the threat of repayment demands from the Zulagenstelle (the allowance office) if the capital was not reinvested in a new home promptly. From 2027, these restrictive ties to owner-occupation fall away after just five years. As an owner, you gain a new freedom: once this short period has elapsed, you can decide freely whether to sell, let, or convert your property for family purposes, without having to fear any tax disadvantages.

Removal of the annual increase and administrative relief

In addition to this relief, the previous annual two percent increase to the Wohnförderkonto also no longer applies from 2027^[2]. This noticeably dampens the notional increase in the taxable amount. For many Wohn-Riester savers, the question now is whether staying with the old contract or making a strategic switch to the new Altersvorsorgedepot pays off overall. Because Wohn-Riester constellations are highly individual, a well-founded analysis is advisable. To weigh up the optimal options for your retirement provision, our independent advice service is available to you. A qualified expert can review with you which tax interactions arise in your personal life planning and whether switching is worthwhile.

Switching and transferability: can Wohn-Riester flow into the Altersvorsorgedepot?

A direct transfer of Wohn-Riester capital already used into a new Altersvorsorgedepot is not possible. Because your state-subsidised capital is already tied up in your owner-occupied property, there is no liquid balance that could be transferred to an account. For as-yet-unused balances or building-society contracts not yet allocated, however, more flexible switching options apply, which we examine in our Altersvorsorgedepot guides.

Why immobile equity cannot be transferred

With Wohn-Riester, also known as the Eigenheimrente, the state subsidy flows directly into repaying a property loan or building up a building-society balance. The money is tied up in bricks and mortar. A transfer to the Altersvorsorgedepot simply fails because this capital is physically locked into your house or flat. If, however, you are paying into a Wohn-Riester building-society contract that has not yet been allocated or used for withdrawal, the balance is still liquid. From 2027, such a not-yet-invested cash-Riester balance can generally be transferred tax-neutrally into the new Altersvorsorgedepot^[1].

Reformed rules from 2027 and the Wohnförderkonto

From 2027, the Wohn-Riester system is integrated into the new subsidy logic, which also brings simplifications for the dreaded Wohnförderkonto. The notional two percent annual interest no longer applies going forward, and the taxation period shortens from twenty to just five years^[1]. This gives you considerably more flexibility if you want to sell or let your property in retirement. You can estimate with the subsidy calculator whether keeping your old contract pays off or whether you should reallocate unused balances. For highly complex detailed planning, our independent advice service is happy to connect you free of charge with licensed experts who assess your personal situation.

Grandfathering and new entrants: what applies to old and new contracts?

Anyone who already has a Wohn-Riester contract has legitimate questions, in light of the 2027 reform, about the future of their painstakingly built-up Eigenheimrente. The most important message upfront: for all existing contracts legally concluded before 1 January 2027, unlimited, state-guaranteed grandfathering applies^[3]. You can therefore continue your existing Wohn-Riester contract entirely unchanged under the old subsidy logic, keep paying into it, and claim the state allowances as before. There is no automatic obligation for you to switch to the new Altersvorsorgedepot.

Expansion of subsidy eligibility from 2027

A genuine highlight of the reform concerns the far-reaching expansion of subsidy eligibility from 2027. Until now, the self-employed, freelancers and tradespeople were largely excluded from the classic Riester system, unless they were indirectly eligible via a spouse. From 2027, around 4 million self-employed people in Germany gain direct, personal access to state-subsidised private retirement provision for the first time. This new rule also enables this historically disadvantaged professional group to build up the new, flexible account structures for their own provision.

• Guaranteed grandfathering: contracts you concluded before 2027 continue under exactly the same conditions and tax rules as before.
• Expansion of eligibility: the self-employed and freelancers gain full, direct subsidy eligibility from 1 January 2027.
• Individual transition process: switching Riester capital into the new account is provided for in principle, but for property-tied Wohn-Riester it requires a precise tax review.

If you want to work out how the new state subsidy compares with your existing old contract, we recommend a look at our subsidy calculator. Because Wohn-Riester occupies a special tax position through the Wohnförderkonto and the later deferred taxation, a direct transfer of property capital is often impossible or financially unfavourable. We continually provide well-founded background reports on this in our knowledge section.

Wohn-Riester vs. Altersvorsorgedepot: the direct comparison

Wohn-Riester (the Eigenheimrente) and the Altersvorsorgedepot pursue fundamentally different approaches to your retirement provision. While the Altersvorsorgedepot relies on high-return wealth building with securities such as ETFs, Wohn-Riester focuses on rent-free living in retirement through a debt-free property. A direct transfer of capital already tied up in a home into a liquid securities account is physically impossible, because the subsidised capital is locked into the bricks and mortar of your property. Anyone wanting to combine both provision strategies in future, however, benefits from 2027 from a simplified allowance structure and substantial relief on the Wohnförderkonto. In particular, scrapping the annual two-percent interest and shortening the taxation period in the retirement phase from twenty to just five years make owning your home in retirement considerably more flexible^[1].

Key differences compared

Whether rent-free living or a liquid securities account is the right provision strategy for you depends on your individual preferences and your family situation. While families benefit from high Kinderzulage payments on building-society saving, the self-employed and employees often value the flexibility of securities saving. You can generally continue existing Riester contracts, keep paying into them under the new system from 2027, or transfer them into an Altersvorsorgedepot under certain conditions^[4]. Our knowledge section gives you access to detailed guides on these complex switching processes. For a tailored decision that optimally accounts for your tax situation and the particulars of the Wohnförderkonto, our independent advice service is available to you, connecting you free of charge with licensed experts.

Next steps: when advice pays off

Wohn-Riester differs fundamentally from classic pension insurance policies, because the subsidised capital is tied up directly in the owner-occupied property. A direct transfer of property capital into a liquid Altersvorsorgedepot is therefore technically usually impossible and not provided for by law. Anyone who acts hastily, terminates their old contract prematurely, or makes disadvantageous dispositions risks losing allowances and facing substantial back-tax payments. For this reason, well-founded preparation is essential. The knowledge section offers you source-based, BMF-substantiated guidance for transparently analysing the complicated Eigenheimrente constellation and avoiding wrong decisions.

Wohnförderkonto and taxation in focus

With the upcoming reform, the Wohnförderkonto is noticeably simplified from 2027. The previous annual two percent increase no longer applies, and the taxation period during the payout phase is drastically shortened from twenty years to just five years^[1]. Despite this statutory relief, deferred taxation remains a highly individual matter. Because every case varies through factors such as personal income and the remaining loan balance, Wohn-Riester savers should calculate the financial implications precisely. (Important note: all mathematical model calculations are purely illustrative and do not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.)

• Review your existing contract: compile the current values of your Wohnförderkonto as well as your remaining repayment term.
• Digital preparation: use the subsidy calculator to work out the expected effect of the allowance under the new legislation from 2027.
• Professional advice: use the independent advice service to contact a licensed expert who reviews the tax interactions individually for you.