Altersvorsorgedepot 2027: the complete guide to Germany’s private pension reform

Germany’s private pension reform is now law: the Bundestag passed it on 27 March 2026, and the Bundesrat gave its final approval on 8 May 2026. From 1 January 2027, a new state-subsidised retirement savings product enters the German market: the Altersvorsorgedepot (literally, “retirement provision depot”).

This guide covers what you need to know, factually, before the market opens: who qualifies, how much the state contributes, what fees the law allows, and how you get your capital back at retirement.

Why this reform?

The product it replaces, the Riester-Rente, had a well-documented structural flaw: the capital guarantee requirement forced insurers and banks to park a growing share of savers’ money in low-yield bond instruments. In a world of persistently low interest rates followed by high inflation, that guarantee ended up costing more than it protected, crushing return potential over 20-to-40-year horizons.

Lawmakers made a clear choice: instead of guaranteeing capital, the Altersvorsorgedepot relies on diversification and equity/ETF market exposure to build a genuinely competitive retirement pot, with no guarantee obligation attached.

Existing Riester contracts are not disappearing. They carry grandfather protection (Bestandsschutz) and continue to run as before. Only new contracts opened from 2027 onward fall under the new regime. Transferring existing Riester savings into an Altersvorsorgedepot will also be possible, under conditions still to be specified by the implementing regulations.

Who can open an Altersvorsorgedepot?

This is one of the most significant changes in the reform: the pool of eligible savers is considerably wider than under Riester.

Eligible for the state grant:

employees subject to the statutory pension insurance (gesetzliche Rentenversicherung);
civil servants (Beamte);
and, new under this reform, all self-employed individuals, including freelancers and independent professionals who don’t pay into the statutory pension scheme, a group previously excluded from Riester entirely.

This matters a lot for many residents and international professionals in Germany working as freelancers or through their own company: unlike Riester, access to the grant no longer depends on compulsory statutory pension contributions.

How much to save, how much the state pays

Contribution thresholds

Minimum personal contribution required to qualify for the grant: €120 per year (€10/month).
Contribution level that unlocks the maximum grant: €1,800 per year.
Contributions remain possible up to €6,840 per year; beyond the €1,800 threshold, they no longer generate additional grants.

The base grant (Grundzulage)

50% grant on the first €360 paid in per year (up to €180);
25% grant on the portion between €360.01 and €1,800 paid in per year (up to a further €360).

For an annual savings effort of €1,800, the state therefore pays up to €540 in direct grants per year.

Additional bonuses

Child bonus (Kinderzulage): up to €300 per child, per year.
Career-starter bonus (Berufseinsteigerbonus): a one-off bonus of roughly €200 for savers under 25 who open a contract.

Taxation during the savings phase

Contributions and grants qualify for a special-expenses deduction (Sonderausgabenabzug). The tax office automatically calculates whether the direct grant or the tax deduction is more favourable for the taxpayer, and applies whichever result is better. No tax applies to gains or reallocations made inside the depot during the savings phase.

Fees are capped by law, a rare and important feature

Another notable feature: the law imposes a statutory fee cap on the so-called “standard product”, the baseline offering every provider is legally required to make available.

The cap is set at 1% in effective annual costs (Effektivkosten) for this standard product, down from an initially proposed 1.5%.
This cap applies only to the standard product. More elaborate offerings, a wider fund selection, personalised advice, or managed strategies, sit within a broader fee range.
Pricing information published so far (as of July 2026) remains partial and indicative; final conditions won’t be known until closer to the January 2027 launch.

Over a 30-to-40-year horizon, fee differences between market offers can amount to tens of thousands of euros in final capital. But the headline price is only part of the equation: a self-directed, execution-only account will mechanically show the lowest price, since no advice is included. A contract taken out with an advisor’s support, by contrast, includes an allocation tailored to your horizon and profile, optimisation of your grants, and, where relevant, coordination with your tax situation in another country: factors that also weigh on the final outcome, sometimes more than a fraction of a percentage point in fees. The right approach is to compare what’s actually included in the price, not just the number on the label.

How and when you get your capital back

The payout phase (Auszahlungsphase) follows precise rules:

Payouts can start no earlier than age 65.
Drawdown plan (Auszahlungsplan): capital stays invested and is withdrawn gradually; this plan cannot end before the saver’s 85th birthday.
Partial lump sum: up to 30% of the capital can be withdrawn as a single payment at the start of the payout phase, with the remainder paid out as a drawdown plan or a lifelong annuity.
Combining both options, for example, an initial partial lump sum followed by a drawdown plan, is explicitly allowed.
Taxation on payout: all amounts received (drawdown, annuity, or lump sum) are taxed as other income (sonstige Einkünfte) at the saver’s personal marginal tax rate, generally lower in retirement than during working life.

One last thing before you compare offers

From January 2027, the Altersvorsorgedepot will be sold by providers with different regulatory statuses: banks, insurance companies, and tied agents on one side; independent brokers on the other. The former can only offer products from their own house or designated partners; the latter, under German regulation (§ 34d or § 34f GewO), have no capital ties to product providers and can compare the entire market, effective fees, fund universe, and the quality of the payout structure.

This distinction explains why two seemingly identical contracts can carry very different fees, within the limits of the statutory cap described above.

At Feller Financial Advisory in Frankfurt, I help clients navigate this comparison with full independence, in English, French, or German. Book an introductory call

Frequently asked questions

Who can open an Altersvorsorgedepot? Employees paying into the statutory pension insurance, civil servants, and, new for 2027, all self-employed people and freelancers, even without compulsory statutory pension contributions.

What’s the maximum grant I can receive? Up to €540 per year for a personal contribution of €1,800, plus up to €300 per dependent child and a one-off €200 bonus for savers under 25.

Is there a legal fee cap? Yes, for the standard product every provider must offer: a maximum of 1% in effective annual costs. More elaborate products, outside the standard scope, can charge more.

When and how can I access my capital? No earlier than age 65, as a drawdown plan (which cannot end before age 85), a partial lump-sum withdrawal (up to 30%), or a combination of both. Payouts are taxed at your personal marginal rate.

Does my existing Riester contract disappear? No. Existing contracts continue to run under grandfather protection. Only new contracts opened from 2027 fall under the Altersvorsorgedepot. A voluntary transfer will be possible, under conditions still to be specified.

When can I actually open one? The scheme takes effect on 1 January 2027. Exact conditions from individual providers are not all published yet as of July 2026.

This article is for informational purposes only and does not constitute personalised investment advice. Final terms of the Altersvorsorgedepot may change before it takes effect on 1 January 2027. For an analysis tailored to your situation, book a call with Feller Financial Advisory.

Altersvorsorgedepot 2027: Full Guide (Grants, Fees, Payout)