The introduction of the Altersvorsorgedepot is intended to modernize private retirement provision in Germany. The aim is to give savers easier access to capital market investments with stronger return potential.
Existing Riester savers will be given the option of transferring their existing retirement assets into an Altersvorsorgedepot. The switching process is to be handled largely by the providers involved. Grandfathering applies here:
Please note: do not cancel your Riester contracts, as otherwise allowances and tax advantages would have to be repaid. When you switch to the Altersvorsorgedepot, they are preserved!
The Riester pension was originally developed to compensate for retirement income shortfalls in the statutory pension insurance. In recent years, however, it has often been criticized that high guarantee requirements and low interest rates, combined with high costs on the providers’ side, have limited the return potential.
The Altersvorsorgedepot is intended to create higher long-term earnings potential in the long run than the Riester pension!
Yes, it is possible to keep an existing Riester contract running and open an Altersvorsorgedepot in parallel. In that case the allowances have to be assigned to one of the two contracts.
Running both in parallel can make sense in particular if you want to continue a strong unit-linked Riester contract and at the same time use the new Altersvorsorgedepot to build up assets in the future. The government subsidy is credited exclusively to the contract for which a permanent allowance application is on file.
Please note: transferring a Rürup contract into the Altersvorsorgedepot is not possible.
Savers generally have to carry out only a few steps themselves. In particular, you need to select a suitable provider, open the securities account and issue the transfer request. The technical implementation then takes place largely between the providers directly.
Product name | Riester pension | Altersvorsorgedepot |
Type of investment | Mostly insurance policies/funds | Securities account with ETF and fund investments |
Return potential | Rather limited | Higher through the capital market |
Flexibility | Limited | Significantly higher |
Subsidy | Government allowances, tax advantages | Substantial government allowances, tax advantages |
Costs | In some cases very high | Depends on the provider, but significantly lower |
Scenario | Riester balance | Assumed return | Possible account value after 20 years* |
Example 1 | €25,000 | 5% p.a. | €66,332 |
Example 2 | €50,000 | 5% p.a. | €132,665 |
Example 3 | €100,000 | 5% p.a. | €265,330 |
Is it worth switching from Riester to the Altersvorsorgedepot?
That depends on your contract. Your existing Riester contract continues as normal – it is not cancelled or automatically converted. A switch can be worthwhile if your old contract has high costs and you want to move to low-cost ETFs. For low earners with several children, however, Riester can even remain the better option, because the old fixed allowances have a stronger effect there than the new percentage-based subsidy. Work through your own case before you change anything.
Can I transfer my existing Riester balance into the Altersvorsorgedepot?
Yes, that is provided for. Unlike holdings from a non-subsidized securities account, balances from a Riester contract are to be transferable into the Altersvorsorgedepot. This means you take your accumulated capital with you and continue it under the new rules. Exactly how the transfer works and which deadlines apply depends on the provider – the details will be settled by the start in 2027.
Are my allowances preserved when I switch?
Yes. When you transfer into the Altersvorsorgedepot, the allowances and tax advantages you have already received remain fully preserved. That applies both to the basic allowance and to the child allowance. Only if you cancel the contract would you have to repay this subsidy – with a switch that does not happen.
How will my securities account be taxed later on?
What applies is the principle of deferred taxation. During the accumulation phase you benefit from tax advantages, while returns and price gains grow in the account untaxed. Only on payout in retirement do you pay tax – usually at a lower personal tax rate than during your working life.
What is the main difference from the old Riester pension?
Instead of a guarantee-oriented insurance policy, with the Altersvorsorgedepot you invest directly in the capital market, above all through ETFs and funds. This creates higher return potential, but also fluctuations in value. You can find the detailed comparison at Riester pension vs. Altersvorsorgedepot.
What happens to my money in retirement?
When you retire, you decide how your assets are paid out: as a lifelong life annuity, through a flexible drawdown plan to age 85 or as a combination. You can withdraw up to 30% as a one-off payment; the rest stays invested and can keep generating returns.
Is my transferred balance protected?
If you wish, you can choose a contribution guarantee of 80% or 100%. This means that part or all of the contributions you have paid in are secured by the time your pension starts. But note: the higher the guarantee, the lower the return potential is as a rule, because less capital can be invested freely.