Switching providers: transfer instead of terminating
When you switch providers, your balance moves from one Altersvorsorgedepot to another without the subsidy being lost. The legislator has deliberately kept switching simple. In the first five years of the contract it may cost no more than €150; after that it is free.
Table of contents
What is switching providers?
Legally it is a transfer of the contract balance. Your old provider sells the securities or transfers them, the capital goes directly to the new provider, and the new provider continues the contract with the same subsidy history. At no point do you receive money into your own account.
That is exactly the difference from termination. Anyone who has the balance paid out and then pays it in again ends up with a non-qualifying withdrawal that they triggered themselves. Allowances and tax advantages from all years then fall due.
Why did the legislator arrange it this way?
With the Riester pension, switching was practically impossible because acquisition costs were charged all over again. The fee cap is intended to prevent savers from being stuck in expensive contracts.
The process in five steps
- Take out a new contract with your preferred provider and request the transfer request there.
- Fill in the request, enter the contract number of the old securities account and submit it.
- The new provider requests the balance from the old one; you do not have to terminate anything there.
- The capital is transferred and the subsidy history moves with it.
- Submit the permanent allowance application with the new provider.
The last step is the one most often forgotten. The permanent allowance application applies to the contract for which you granted it and does not move with you automatically. Without it, the allowance for the year of the switch fails to appear.
When switching pays off
The lever is the ongoing costs. Half a percentage point less in Reduction in yield sounds like nothing and is a lot over long periods.
| Remaining term | Difference on an account value of €50,000 |
|---|---|
| 10 years | around €4,100 |
| 20 years | around €14,500 |
| 30 years | around €38,000 |
Model calculation, 6.0% versus 5.5% net return, no further contributions. Values rounded.
Set against a one-off fee of €150, switching is worth it with a long remaining term even for small cost differences. Conversely, anyone retiring in five years gets almost nothing out of it.
When you are better off staying
- Short remaining term. Under ten years, the cost advantage rarely justifies the effort.
- Guarantee commitments in the old contract. A high guaranteed annuity factor is worth money and is lost when you switch.
- Ongoing reallocation. Anyone in the middle of a lifecycle model should choose the timing carefully.
- A bad market phase. If securities are sold for the transfer, you realize the current price. After a slump that is the wrong moment.
Two examples
Yasmin, 33, took out a contract with her house bank in 2027. Reduction in yield (RIY) of 1.4 percent. In 2030 she finds an offer with 0.6 percent. Account balance €9,000, remaining term 34 years. The €150 fee applies because she is still within the first five years. Over the remaining term she nevertheless saves a five-figure amount.
Heinz, 61, securities account at €74,000, retirement at 67. His contract costs 1.2 percent, another one 0.7. With six years remaining, the difference stays manageable, and the upcoming reallocation would make switching even more complicated. He stays.
Frequently asked questions about switching providers
Do I have to terminate with my old provider?
No, and you should not. The new provider requests the balance. Termination with a payout would be a non-qualifying withdrawal.
Do my ETF units move with me?
That depends on whether the new provider offers the same funds. Otherwise they are sold and reinvested.
How often may I switch?
No numerical limit is provided for. It rarely makes sense more often than every few years.
What happens to the allowances I have received so far?
They are retained in full and move with you as part of the balance.
Can the old provider refuse the switch?
No. The right to a transfer is provided for by law.
Is switching already worth it in 2027?
At market launch there is hardly any comparative data. Anyone wanting to switch is better off waiting until the reduction in yield (RIY) figures of several providers have been published.
What should you take away?
Transfer, do not terminate. And do not forget the permanent allowance application with the new provider, otherwise the allowance is missing for exactly the year of the switch.
Last updated: July 2026. Sources: BMF, German federal government, Bundestag printed paper 21/4088, Deutsche Rentenversicherung.
Keep calculating and reading
Altersvorsorgedepot calculator Plus — calculate the subsidy, tax advantage and final balance for your own situation.
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?