Altersvorsorgedepot

What is the Altersvorsorgedepot?

The Altersvorsorgedepot is a certified retirement provision contract, which works like an ordinary securities account, with the difference that the state subsidizes the saving and grants tax relief. Savers can pay in money flexibly (also via a regular savings plan) and invest the capital worldwide in stocks, exchange-traded index funds (ETFs), traditional investment funds or bonds.

The key change compared with Riester: the 100% contribution guarantee is abolished. Savers can deliberately opt for high-return equity ETFs and no longer have to park most of their money in low-yielding guarantee pots. Anyone wanting security can optionally choose a Guarantee product or the cost-capped default standard product.

Who can open an Altersvorsorgedepot?

The group of people eligible for the subsidy has been significantly widened. Eligible are:

• Employees and workers, who have compulsory cover in the statutory pension insurance.
• Civil servants, judges and career soldiers (with consent to the data exchange between the public-sector employer and the ZfA).
• Self-employed people and freelancers, for the first time even without compulsory cover in the statutory pension.
• Compulsory members of professional pension schemes (e.g. doctors, lawyers, tax advisors).
• Children and young people through the Frühstartrente (early-start pension for children).

When does the Altersvorsorgedepot start?

The statutory launch date is 1 January 2027. The Retirement Provision Reform Act was passed by the Bundestag on 27 March 2026, and the Bundesrat approved it on 8 May 2026. From that date providers (banks, neobrokers, fund companies, insurers) may distribute certified products. The Frühstartrente also starts on 1 January 2027. No contract can be signed before then, and there is no transitional rule for 2026.

How does the Altersvorsorgedepot work?

The contract runs through three phases:

During the accumulation phase the capital in the securities account is protected from state access and cannot be seized (similar to Riester). An early payout is possible, but then all allowances and tax advantages received have to be repaid.

How much subsidy is there?

Unlike with Riester, the allowance is proportional to the contribution:

Anyone with a higher tax rate can additionally deduct €1,800 plus the allowance entitlement as special expenses, so €2,340 without children. The tax office automatically applies the Günstigerprüfung (more-favourable-treatment check), to determine whether the allowance or the tax deduction is more favorable. Over an entire working life this means up to €6,840 per year can be contributed.

Why does the Altersvorsorgedepot replace the Riester pension?

The Riester pension was long regarded as too expensive, too complicated and weak on returns. The main criticism was the 100% contribution guarantee, which forced providers to put savers’ money mostly into low-yielding bonds. With the Altersvorsorgedepot the legislator is betting on more return potential, less bureaucracy and a larger group of people eligible for the subsidy.

• Higher return potential through equity and ETF investment.
• A simple, uniform allowance formula instead of the complicated 4% calculation.
• Cost cap of 1% on the default standard product.
• The self-employed are included for the first time.
• Flexible payout instead of compulsory lifelong annuitization.

Model calculations: how different savers benefit

How much the Altersvorsorgedepot actually delivers depends heavily on income, age and family status. Three realistic profiles show the leverage.

Which providers are there?

From January 2027 all banks, direct banks, savings banks, cooperative banks, neobrokers, fund companies and insurers certified by the Federal Central Tax Office may distribute Altersvorsorgedepots. The following providers have already publicly announced products (as of May 2026):

Advantages and disadvantages at a glance

Advantages

• Higher return potential through equity and ETF investment without a mandatory guarantee.
• Simple, proportional subsidy (50% / 25%).
• Cost cap of 1% per year on the default standard product.
• Self-employed people and professional pension schemes included for the first time.
• Flexible payout, choice between a life annuity and a drawdown plan to age 85.
• Protected from seizure and from Hartz IV asset rules during the accumulation phase.
• Remaining capital in the drawdown plan can be inherited.
• Simplified provider switching with a statutory fee cap.

Disadvantages and risks

• Without a guarantee, price swings can be painful shortly before retirement starts.
• An early payout is a “non-qualifying withdrawal”; all allowances have to be repaid.
• Capital is locked until age 65 at the earliest.
• Payouts are fully subject to income tax.
• The complex more-favourable-treatment check can create a need for advice.

Tax strategy: when is the securities account particularly worthwhile?

The financial leverage comes from the difference between your tax rate during working life and in retirement. Rules of thumb:

• Marginal tax rate today > 30%: The special expenses deduction is usually more favorable than the basic allowance; the more-favourable-treatment check selects automatically.
• Marginal tax rate today < 30%: The basic allowance beats the tax deduction.
• Families with children: Even on a low income the securities account is heavily subsidized through the child allowance (see the Müller family example).
• Self-employed: Eligible for the subsidy for the first time; the €1,800 cap is lower than for the Rürup pension, but the capital can be inherited and is more flexible.

You will find a full tax simulation for your individual case in our AVD calculator.

Common mistakes with the Altersvorsorgedepot

• Ignoring excessive costs. One percentage point less in reduction in yield adds up to 20–30% more final balance over 30 years.
• Choosing a guarantee product out of fear. Over a term of 30+ years the 100% guarantee has historically cost several tens of thousands of euros in return.
• Getting the minimum contributions wrong. Anyone contributing less than €120 a year does not receive the full allowance, nor the child allowance.
• Forgetting to apply for the allowance. The permanent allowance application has to be signed once, otherwise there is no payment from the ZfA.
• Cancelling early. Cancelling before 65 is always a non-qualifying withdrawal.