Child allowance in the Altersvorsorgedepot: €300 per child per year
From 2027 the child allowance in the Altersvorsorgedepot will be €300 per year for each child you receive child benefit for. It is paid on top of the basic allowance and is granted in full even for very small own contributions.
Table of contents
What is the child allowance?
A direct government payment for parents who pay into an Altersvorsorgedepot (Germany’s state-subsidized retirement investment account). For each child for whom child benefit is received, €300 a year flows into the securities account on top.
Who gets the child allowance?
- Parents eligible for the subsidy who hold a certified Altersvorsorgedepot.
- At least one parent has to pay in own contributions.
- There has to be a child benefit entitlement for the child (normally up to 18, or up to 25 while in training).
Is a small own contribution really enough?
Just €25 per month is enough to secure the full child allowance. Families benefit above average.
How does the child allowance work?
On the first application the allowance is automatically assigned to the mother. Parents can apply jointly each year to have it credited to the father’s securities account instead. The Zentrale Zulagenstelle für Altersvermögen (ZfA) cross-checks this with the family benefit office and credits the amount directly to the securities account.
How much does it add up to in the end?
Parents with two children who receive the child allowance for 18 years collect, through this allowance alone, €10,800 in their securities account. At a 6% return over the 40 years until retirement begins, that grows to around €40,000.
Calculation for your family: Enter the number of children, your income and your contribution into our AVD calculator and see the total family subsidy at a glance.
Why does the child allowance exist?
Families are meant to be relieved directly. Especially for low-earner parents with small own contributions, the child allowance acts as an extremely powerful lever on the subsidy rate: with two children, an own contribution of just €300 can trigger an allowance of €750, an effective doubling of the amount saved by the state.
Model calculations from families
The Bauer family (3 children, Sandra pays in €25/month). Own contribution €300/year. Basic allowance €150 + 3 × €300 child allowance = €1,050 in government subsidy on €300 of your own money. Subsidy rate 350%.
Several birth cohorts: Children born before 1 January 2008 still bring the old Riester child allowance of €185; in the new Altersvorsorgedepot from 2027 a uniform €300 counts per child you receive child benefit for.
Frequently asked questions about the child allowance
What happens if I pay in nothing?
Without an own contribution there is no allowance.
Do I also get the allowance in blended families?
Yes, provided there is a child benefit entitlement for the child. The allowance goes to the parent who receives the child benefit.
Does the child allowance come on top of the Frühstart-Rente?
No, the Frühstart-Rente is the child’s own securities account with its own subsidy (€10 per month). The child allowance goes into the parents’ securities account.
What happens if the child takes a break after school?
If the child benefit entitlement is suspended (e.g. a gap year that does not count), the child allowance is lost for that year as well.
Can I change the allowance retroactively?
The assignment between mother and father can be changed each year. A retroactive change for past years is not possible.
What if the parents separate?
The child allowance follows the child benefit entitlement, usually with the parent providing the main care.
How much adds up in the end for the children?
Over 18 years the child allowance adds up to €10,800 per child, and with compounding almost €40,000 over a long investment horizon.
Last updated: June 2026. Sources: BMF, German federal government, Bundestag printed paper 21/4088.
Keep calculating and reading
Altersvorsorgedepot calculator Plus — calculate the subsidy, tax advantage and final balance for your own situation.
- minimum own contribution
- Frühstart-Rente (early-start pension for children)
- Günstigerprüfung (more-favourable-treatment check)
Related content: Altersvorsorgedepot for families.
All terms at a glance: Glossary from A to Z.
Official sources and further information
- Federal Ministry of Finance, FAQ on the reform of private retirement provision
- German federal government, private retirement provision reform
- German Bundestag, resolution on the Altersvorsorgedepot (calendar week 13/2026)
- Bundestag printed paper 21/4088 (PDF)
- Deutsche Rentenversicherung, reform announcement
- Stiftung Warentest, Altersvorsorgedepot
- Verbraucherzentrale, the new Altersvorsorgedepot: opportunity or sales trap?