From 2027 the Riester pension in its current form will no longer be sold; existing contracts continue. New is a subsidy that works differently and a new product, the retirement savings account (Altersvorsorgedepot). Every rule comes with its status – “passed” is not “in force”.
Status
- Pension reform act – passed and promulgated. Bundestag 27 March 2026, Bundesrat 8 May 2026, published 29 May 2026 (BGBl. 2026 I No. 156). Core rules apply from 1 January 2027.
- Early-start pension (Frühstartrente) – not final. Bundestag 16 October 2026; Bundesrat pending.
- State-run standard account – open. Allowed by law, launch undecided.
The new subsidy: allowance per euro
| Element | Rule from 2027 | Maximum |
|---|---|---|
| Basic allowance, tier 1 | 50 cents per euro saved up to €360 a year | €180 |
| Basic allowance, tier 2 | 25 cents per euro from €360.01 to €1,800 | €360 |
| Basic allowance total | €540 | |
| Child allowance | €1 per euro saved, per child on child benefit | €300 per child |
| Career-starter bonus | one-off, contract signed before 25 | €200 |
Own contributions up to €1,800 plus allowances are deductible. Partners without income pay at least €120 a year; self-employed people outside the statutory scheme become eligible.
The account and the guarantee choice
A certified fund-based securities account with no guarantee on contributions: the value can fall below what you paid in, but guarantee costs disappear. Subsidised insurance products with a guarantee remain – 100 % or, new, 80 % at the start of payout. Every provider must also offer a standard account (Standarddepot) with costs capped at 1 % a year. Speculative investments are excluded. Account or guarantee is an investment decision for a licensed adviser.
Payout phase
- Start from 65 (previously 62), no later than 70.
- Lifelong annuity or a payout plan running at least to 85; remaining balances are inheritable.
- Switching provider: free after five years, up to €150 before.
Existing Riester contracts
- Grandfathered: contracts signed before 1 January 2027 keep today’s rules, including the 100 % guarantee.
- Conversion possible from 1 January 2027 until payout begins; according to consumer advice centres there is no way back. Contracts with many allowances or a high guaranteed rate deserve a proper comparison first.
- Basic pension (Rürup): unchanged, not transferable.
Early-start pension: €10 a month – status open
Every child resident in Germany between 6 and 18 is to receive €10 a month into its own account; parents may top up. Start with the 2020 and 2021 cohorts in 2027. Bundesrat pending – do not plan around it yet.
How to proceed
- Review existing contracts: guaranteed rate, allowances, costs.
- Run the maths: €1,800 saved yields €540 – 30 % top-up, 50 % on the first €360.
- Settle the guarantee question with a licensed adviser; do not convert before January 2027.
- Wait for the Bundesrat on the early-start pension.
General information, not legal, tax or investment advice. Sources: Altersvorsorgereformgesetz (BGBl. 2026 I No. 156), German Income Tax Act (§§ 10a, 84–86 EStG), Federal Ministry of Finance, Deutsche Rentenversicherung (notice of 19 October 2026), German Bundestag, Verbraucherzentrale Niedersachsen, Stiftung Warentest – as of October 2026. Wondering what the reform means for your contract? Get in touch.
