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Contribution guarantee in the Altersvorsorgedepot: optional instead of mandatory

June 30, 2026 Comments Off on Contribution guarantee in the Altersvorsorgedepot: optional instead of mandatory

With the Altersvorsorgedepot the mandatory 100% contribution guarantee of the Riester pension disappears. Savers can choose: no guarantee, 80% or 100% of the contributions paid in. Less guarantee means more return potential, but also more risk.

Table of contents

  1. What is the contribution guarantee?
  2. How does it work?
  3. What does a guarantee cost?
  4. Which guarantee is worthwhile when?
  5. Why was the guarantee requirement abolished?
  6. Frequently asked questions

What is the contribution guarantee?

A contractual promise by the provider that a certain percentage of the contributions paid in will be available as a minimum at the start of retirement, even if the capital markets crash in the meantime.

How does the contribution guarantee work?

Providers typically meet the guarantee through:

  • A higher share of safe investments (bonds, fixed-term deposits).
  • Value protection mechanisms (CPPI: Constant Proportion Portfolio Insurance).
  • Unit-linked policies with the guarantee assets of the insurer.

The higher the guarantee, the higher the share of low-return investments and the smaller the equity allocation.

Do I even need a contribution guarantee?
The 100 percent guarantee is no longer mandatory. Anyone with 20+ years ahead of them should question it critically.

How much return does a guarantee cost?

Guarantee typ. equity allocation expected gross return p.a.
0% 80–100% 5.5–7.5%
80% 40–70% 3.5–5.5%
100% 10–40% 1.5–3.5%

Approximations, depending on the market. Higher guarantee = a more volatile risk/return ratio.

Which guarantee is worthwhile when?

  • Long term (> 20 years): Tends toward 0% or 80%; market phases can be evened out.
  • Short term (< 10 years): 80% or 100%, less time to make up losses.
  • High risk aversion: 100%, psychological security, but a low return.

Why was the guarantee requirement abolished?

Because it was a main reason why the Riester pension barely produced any return. In the low interest rate environment the 100% guarantee forced providers to put almost everything into low-yielding bonds. Now that the requirement has gone, savers can finally opt for equity ETFs and capture the significantly higher long-term equity return.

Which guarantee suits whom?

Kim, 28, long investment horizon (39 years). Chooses a 0% guarantee and 100% equity ETF. Expected value at a 6.5% return: ~ €320,000.

Frank, 60, shortly before retirement (7 years). Chooses a 100% guarantee. Expected gross return only ~ 2.5%, but the capital is secured in nominal terms.

Frequently asked questions about the contribution guarantee

Are allowances part of the guarantee?

Yes, the Allowances are included in the guaranteed sum.

Does the guarantee protect against inflation?

No. A 100% nominal contribution guarantee does not mean that purchasing power is preserved. Inflation has to be earned on top, which is hard with a high guarantee.

Can I change the guarantee later?

With many providers yes, but often only in one direction (e.g. lowering the guarantee). A switch costs fees.

Can I increase the guarantee later on?

Not with most providers; the guarantee is set at the start of the contract.

Guarantee on allowances?

Yes, they are included in the guaranteed sum.

What happens if the provider goes bust?

Securities are segregated fund assets and are protected. For insurers, Protektor (the guarantee fund) steps in.

What is the alternative to a guarantee?
A lifecycle model combines return potential with security at the end of the term, usually the better choice.

Last updated: June 2026.

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