The short answer
From 2027 a new retirement account lets you invest with state money on top, if you're eligible: up to €540 a year for you, €300 per child. It replaces Riester for new contracts. Payouts are taxed in retirement.
You save, the state adds a bit
From 1 January 2027 there's a new way to save for retirement: the Altersvorsorgedepot. For every euro you pay in, the state adds a subsidy, up to a yearly maximum, if you qualify. It replaces Riester for new contracts.
- Your contributionUp to €6,840 a year; subsidy on the first €1,800.
- State subsidyBasic subsidy up to €540, plus €300 per child.
- InvestedInside a certified Altersvorsorgedepot from 2027.
- RetirementPaid out under the product’s retirement rules.
Maya pays €150 a month. What does the state add?
Maya is hypothetical. The subsidy rules are the official ones.
Profile
- Children
- 1
- Product
- Altersvorsorgedepot
- From
- 1 January 2027
Inputs
- Monthly contribution
- €150
- Per year
- €1,800
- Eligible
- Assumed yes
What happens
State subsidy per year€840€540 basic subsidy plus €300 for her child, on top of the €1,800 she pays in herself.
Why
Maya pays exactly €1,800 a year, the highest amount that still earns basic subsidy. The first €360 earn 50 cents per euro, the rest 25 cents.
Based on the official summary of the reform (Bundesregierung, checked 20 October 2026). Eligibility is assumed. Try your own numbers
How the subsidy is worked out
The subsidy comes in two steps. The first €360 you pay in each year earn 50 cents per euro. Everything from €360 up to €1,800 earns 25 cents per euro. That makes €540 the most you can get as basic subsidy.
Parents get €300 per child per year on top, in full once they pay in at least €25 a month. People who sign before 25 get a one-off €200 bonus. You may pay in up to €6,840 a year; amounts above €1,800 earn no subsidy.
Subsidy and limits (from 2027)
- 50 cents per euro on contributions up to €360 a year, 25 cents per euro up to €1,800. Basic subsidy up to €540.
- Child allowance €300 per child and year, in full from €25 a month.
- One-off €200 bonus for contracts signed before age 25.
- Payments up to €6,840 a year allowed. Costs of the standard product capped at 1.0%.
- No new Riester contracts from 2027.
Source: Bundesregierung: Reform der privaten Altersvorsorge (1 June 2026)
So how is it different from a normal ETF depot?
Payout and early-access rows come from the Federal Ministry of Finance’s questions and answers on the reform. That page was written for the draft law; details of the final law can differ. Moving abroad is not covered by the official sources we checked, so ask the provider before you sign.
Want the legal timeline?The rules, the exact numbers and the edge cases. Open it whenever you're curious.- Where the law stands today
Where the law stands today
17 Dec 2025Federal cabinet approves the reform.27 Mar 2026Bundestag passes it, with amendments.8 May 2026Bundesrat agrees.End of May 2026The reform enters into force.1 Jan 2027New products start. No new Riester contracts.
Source: Bundesregierung summary of 1 June 2026.
Check yourself
You qualify and pay in €1,800 a year. What's the most basic subsidy you can get?
Video lesson · In the makingThe Altersvorsorgedepot
Official sources
- Bundesregierung: Reform der privaten Altersvorsorge (1 June 2026)
- Federal Ministry of Finance: questions and answers on the reform of subsidised private pensions
Last checked:
We explain how the German rules work in general. This isn't personal financial, tax or legal advice. Investments can lose value.