Switching from Riester to the Altersvorsorgedepot: how it works
From 2027, all Riester savers may transfer their contract into a modern Altersvorsorgedepot account. Allowances and tax advantages remain in place, costs are capped and switching is voluntary. When it pays off and when it does not.
What does switching achieve?
- Better return potential. The old Riester contract usually carries a 100% contribution guarantee and therefore invests heavily in low-interest bonds. The Altersvorsorgedepot allows a freely chosen ETF share.
- Lower costs. Riester contracts often have 1.5 to 2% Reduction in yield, ETF default standard products in the AVD are at 0.3 to 0.7%.
- More flexibility. Drawdown plan to age 85 or life annuity, instead of only a life annuity.
- Higher subsidy. €540 basic allowance instead of the €175 Riester basic allowance.
- Inheritable. Remaining capital on death before retirement goes to the heirs instead of being partly forfeited.
When is switching worth it?
- Contract from 2012 or later with a guaranteed interest rate below 1.75%.
- At least 15 years until the start of retirement.
- High ongoing costs (reduction in yield above 1.2%).
- A wish for a higher equity share or your own choice of ETFs.
- Contract with a low remaining balance (the effort of switching pays off faster).
When is switching worth it?
Switching is worthwhile for modern Riester contracts with high costs and a long remaining term.
When is switching rather not worthwhile?
- Old contract with a guaranteed interest rate of 3.25% or 2.75% (contracts before 2012). You will not get rates like that today.
- Less than 5 years until the start of retirement; the effort no longer pays off.
- Grandfathering for ongoing Wohn-Riester arrangements.
- Very low contract costs and a good ETF selection (rare, but possible).
Step-by-step instructions
- Choose a new provider. Compare the reduction in yield, ETF selection and minimum contribution of the various Altersvorsorgedepot providers.
- Submit a transfer request to the new provider. This form is provided to you by the new provider and is sufficient; a separate cancellation with the old provider is not needed.
- Request a certificate of holdings from the old provider (mandatory information).
- Sign the transfer request and send it to the new institution, done.
- Wait. The transfer typically takes 8 to 12 weeks.
- Issue a new allowance application. The permanent allowance application has to be signed again with the new provider, otherwise the allowances stall.
Costs and deadlines
| Aspect | Rule |
|---|---|
| Switching fee, old provider | max. €150 in the first 5 contract years, €0 thereafter |
| Switching fee, new provider | typically €0 |
| Processing time | typically 8 to 12 weeks |
| Transfer of the allowances | complete, no loss |
| Transfer of the tax advantage | complete, no subsequent taxation |
| Cancellation of the old contract | not necessary, the provider transfers directly |
What happens after the switch
The entire balance from the old contract (contributions + allowances + earnings) is transferred into the new Altersvorsorgedepot, where it continues to be subsidized as before. The basic allowances and Child allowances you have received so far are retained in full.
If you have used a special expenses deduction over the years, that too remains unchanged; there is no subsequent taxation. Only future contributions follow the new, higher AVD subsidy amounts.
Examples
Jens, 38, Riester contract since 2013, €15,000 balance. Reduction in yield 1.4%, planned remaining term 29 years. Switching to the ETF default standard product with a reduction in yield of 0.5% brings around €28,000 more capital over 30 years; the €150 switching fee is recouped within a few months.
Renate, 58, Riester contract from 2003, guaranteed interest rate 3.25%. At that guaranteed rate, very hard to beat, plus only 7 years of remaining term. Switching is probably not worthwhile; the old contract stays.
Sabine & Tom, both 30, Wohn-Riester for a shared home. Special case: Wohn-Riester is not supported in the Altersvorsorgedepot. Here the existing Riester contract remains the better route.
Frequently asked questions about switching
Do I have to cancel with my old provider?
No, you instruct the new provider to carry out the transfer. The rest happens in the background.
Do I lose my allowances when I switch?
No, they are transferred in full to the new securities account.
What happens to my guaranteed interest rate?
It lapses with the switch. That is why old contracts with a high guaranteed rate are hard to beat.
How long does the transfer take?
Typically 8 to 12 weeks. During this time the balance is dormant; new contributions should only be made once the transfer is complete.
Can I reverse the switch?
No, the switch is final. So run the numbers carefully beforehand.
Which switching fee is permitted?
A maximum of €150 in the first 5 contract years, and nothing at all after that. Higher fees are not permitted.
Do I get the career starter bonus retroactively when I switch?
No. The career starter bonus applies only to first contracts taken out before your 25th birthday. Switching an existing contract does not count.
When am I better off staying?
With a guaranteed interest rate of 3.25% from old contracts, grandfathering usually remains the better choice.
Keep calculating and reading
Altersvorsorgedepot calculator Plus — calculate the subsidy, tax advantage and final balance for your own situation.
Related content: Altersvorsorgedepot from 50.
All terms at a glance: Glossary from A to Z.