Retirement Provision Reform Act (Altersvorsorgereformgesetz): the law behind the Altersvorsorgedepot

What is the Retirement Provision Reform Act?

An omnibus act that amends several tax and social laws (including the EStG and the AltZertG). Its aim: to modernize state-subsidized private retirement provision in Germany after years of criticism of the Riester pension.

Key provisions of the act

• Introduction of the Altersvorsorgedepot.
• Frühstartrente with a state subsidy of €10/month.
• New proportional basic allowance (50% and 25% respectively).
• Maximum reduction in yield of 1% for the default standard product.
• Abolition of the mandatory contribution guarantee.
• Widening of the group eligible for the subsidy (self-employed, civil servants, professional pension schemes).
• Flexible decumulation phase (life annuity or drawdown plan to age 85).
• Simplified provider switching with a fee cap of €150.

Timeline: from draft to law

Bodies involved

• Federal Ministry of Finance (BMF), the lead ministry, drew up the draft.
• Bundestag and Bundesrat, the legislature.
• Federal Central Tax Office (BZSt), certifies the retirement provision contracts.
• Zentrale Zulagenstelle für Altersvermögen (ZfA), administers the allowances.
• Consumer protection associations, helped win the cost cap.
• Providers, banks, insurers, fund companies, neobrokers.

Political and social context

The retirement provision reform responds to years of criticism of the Riester pension: too expensive, too complicated, too little return. In 2023 the federal government commissioned a “Private Altersvorsorge” focus group, which worked out the key points. Consumer advice centers, the German Council of Economic Experts and several economic institutes (DIW, ifo) accompanied the draft with recommendations.

The declared aim of the reform: to raise return opportunities, cut bureaucracy and widen the group eligible for the subsidy, without weakening social protection for low earners and families.