Altersvorsorgedepot 2027

The Altersvorsorgedepot 2027 Germany reform creates a new route for tax-supported private retirement saving. The headline change is important: eligible savers will be able to use a certified retirement account without a capital guarantee and invest through funds, including ETFs. However, “ETF pension” is only shorthand. This is not an ordinary, freely accessible brokerage account. It is a regulated retirement contract with eligibility rules, state allowances, restricted access and deferred taxation.

The reform is now law, not merely a policy announcement. The Federal Cabinet adopted the reform on 17 December 2025, the Bundestag passed it on 27 March 2026, the Bundesrat consented on 8 May, and it entered into force at the end of May 2026. Providers may offer the new products from 1 January 2027, according to the Federal Government’s official reform timeline. That distinction matters: the legal framework exists in 2026, but consumers cannot assume every bank, insurer or platform will have a finished product on day one.

This guide explains the law as at 26 August 2026 for English-speaking residents. It covers the product categories, guarantees, the standard product, allowances, existing Riester contracts, voluntary switching, payout choices and provider comparison. It is general information only, not personalised investment, tax or legal advice. For the broader role of private saving alongside Germany’s other pension pillars, see Finanz2Go’s pension-planning overview and private pension guidance.

The short version

From 2027, the reformed system offers two principal categories:

1. Altersvorsorgedepots without a guarantee, designed to permit more market-oriented investing through eligible assets and funds, including ETFs; and
2. guarantee products, which promise that at least 80% or 100% of paid contributions will be available at the start of the payout phase.

A simplified Standarddepot Altersvorsorge sits within the no-guarantee depot category. It uses default settings and two provider-selected funds, includes gradual movement toward the more cautious fund before payout unless the saver chooses otherwise, and has an effective-cost ceiling of 1.0%. The Federal Ministry of Finance (BMF) sets out these final features in its FAQ on the private-pension reform.

Eligible personal contributions receive contribution-linked allowances. Existing Riester contracts are protected and can continue under the old rules. Moving to the new product or funding system is voluntary, not automatic. At retirement, the saver can choose a lifelong annuity or a withdrawal plan running at least to age 85. Each of those statements needs qualification, which the sections below provide.

Legal status and the 1 January 2027 start date

The Altersvorsorgereformgesetz has completed the federal legislative process. The Bundestag’s official record confirms that Parliament approved the reform on 27 March 2026 and identifies the Altersvorsorgedepot as a core element for saving through shares, funds and ETFs; it also records the expansion of eligibility to self-employed people and the planned cost controls (Bundestag decision report). The Bundesrat’s subsequent consent and the law’s entry into force are confirmed by the Federal Government timeline linked above.

The operative consumer date is nevertheless 1 January 2027. The BMF says providers of retirement contracts may offer the new products from that date. “May offer” should not be misread as “every provider must have every variant immediately available.” Certification, product design, investment menus, administration and distribution still need to be implemented.

Certification also has a limited meaning. The Federal Central Tax Office certifies contracts against the legal requirements of the Altersvorsorgeverträge-Zertifizierungsgesetz. The BMF expressly warns that certification does not assess the contract’s economic viability or whether a provider promise is economically attractive or ultimately achievable. A certified product can therefore qualify for the framework without being the best-value choice for a particular person.

What is an Altersvorsorgedepot?

An Altersvorsorgedepot is a certified private-retirement contract in which the saver gives up a contractual capital guarantee so that market-oriented assets can be used. Contributions and state allowances are invested inside the contract. Funds, including ETFs, can be eligible, and gains and income are not taxed during the accumulation phase. The official BMF reform brochure describes it as a return-oriented option and explains that eligible assets are governed by a statutory positive list.

That structure differs from a normal securities account in several ways:

• it must be a qualifying retirement contract, not merely an ETF savings plan relabelled for marketing;
• investment choice is limited to permitted assets and the provider’s contract menu;
• the money is intended for retirement and generally cannot be withdrawn freely;
• allowances and possible tax deductions are tied to eligibility and compliant use; and
• payouts from supported amounts are subject to downstream taxation.

There is no universal rule that the depot should contain only equities. A provider may offer funds with different asset mixes, and a saver’s time horizon, loss tolerance and future need for stable retirement income still matter. A long horizon can improve the ability to tolerate volatility, but it does not remove market risk.

No guarantee versus 80% or 100% guarantee

The choice is not “good ETF” versus “bad insurance.” It is a trade-off between market participation, contractual protection, cost and flexibility.

No-guarantee Altersvorsorgedepot

The provider does not promise that contributions will be intact when payout begins. If markets fall at an unfavourable time, the account may be worth less than total contributions, even after years of saving. There is no third party responsible for making up investment losses. In exchange, the portfolio is not forced to reserve as much capital for a guarantee and can pursue higher expected returns through eligible market investments.

“No guarantee” does not mean no regulation, no diversification or unlimited investment freedom. The contract must still satisfy certification rules, and the investment universe follows the positive list. It also does not mean a particular ETF, return or retirement amount is guaranteed.

Guarantee product

A guarantee product promises that at least 80% or 100% of paid contributions will be available at the beginning of the payout phase for an annuity or withdrawal plan. The BMF’s product comparison explanation states that an 80% guarantee generally permits more opportunity-oriented investing than a 100% guarantee, while a full guarantee normally requires a more cautious approach and may reduce return potential.

The percentage is not an annual-return guarantee, inflation protection or a promise that the account never falls in value during accumulation. Compare the precise guarantee base, timing, exclusions and payout conversion. A nominal 100% contribution guarantee can still lose purchasing power after inflation and costs.

A practical decision framework

Ask how you would react to a large temporary loss, how long remains until payout, whether other secure pension income exists, and how much downside the household can absorb. Then compare expected—not advertised—outcomes after all costs. Someone with a long horizon and strong capacity for loss may value the no-guarantee route. Someone close to retirement or highly loss-averse may value an 80% or 100% floor. Personal suitability cannot be decided from the product label alone.

The Standarddepot is a default product, not a state guarantee

The Standarddepot Altersvorsorge is a simplified Altersvorsorgedepot with statutory defaults. Providers of tax-supported retirement products must make a standard depot available, although they may distribute a cooperating provider’s product; providers dealing only in home-ownership retirement support are exempt. The law also enables a publicly organised standard offering, but the BMF says implementation by a public body still requires a government ordinance that was not yet in place when its FAQ was published.

The standard depot can invest in two funds selected before contract conclusion. One has a more cautious profile and the other takes greater investment risk for greater return potential. Before the payout phase, accumulated assets are gradually shifted toward the more cautious fund unless the saver tells the provider to use a different allocation. The default is intended to reduce late-stage market risk, but automatic de-risking may also limit recovery or growth, so review the glide path rather than assuming “automatic” means optimal.

Effective costs for the Standarddepot are capped at 1.0%, meaning costs may reduce the contract’s average annual return by no more than that measure. The cap is not a promised fee invoice of exactly 1%, nor does it guarantee positive net performance. The Bundestag Finance Committee reduced the final ceiling to 1.0%, as reflected in its recommendation and report, and the BMF’s final consumer guidance uses the same figure.

Most importantly, “standard” does not mean guaranteed, publicly insured or automatically suitable. It is a no-guarantee depot with constrained defaults. A privately distributed standard product and any future publicly organised offering must meet the applicable criteria, but their service, investment implementation and costs below the ceiling can still differ.

State allowances: calculate them carefully

The final allowance design is contribution-proportional. It is easy to confuse it with figures from earlier bill stages, so use the final official guidance rather than old news reports.

For an immediately eligible saver:

• on the first €360 of personal contributions per year, the basic allowance is €0.50 per €1 contributed;
• on the next €1,440, from €361 up to €1,800, it is €0.25 per €1; and
• the maximum basic allowance is therefore €540 per year: €180 on the first band plus €360 on the second.

The maximum personal contribution receiving this allowance formula is €1,800 per year. Total annual payments into a contract may reach €6,840, but paying above €1,800 does not increase the basic allowance. The BMF provides these thresholds and the maximum in its detailed tax-support FAQ.

For a qualifying child, one eligible parent receives a child allowance of €1 for each €1 personally contributed, up to €300 per child per year. The full €300 child allowance therefore requires a €300 annual personal contribution. Do not add €300 automatically if the saver contributes less or if the child-related conditions and allocation to the parent are not met.

A person who is under 25 at the beginning of the contribution year and meets the other requirements can receive a one-off €200 career-starter bonus. The BMF also states that the basic allowance, including that bonus, generally requires at least €120 of annual personal contributions for directly eligible savers. Special rules apply to indirectly eligible spouses or registered partners: they need their own qualifying contract and at least €120 annually, and their allowance calculation is not identical to the ordinary direct-entitlement formula. Do not use a generic online example as a personal entitlement calculation.

Personal contributions and the allowance entitlement can be claimed as special expenses. The tax office performs a more-favourable test to determine whether an additional tax advantage exceeds the allowances. This is not “allowance plus the full headline tax deduction” twice. During accumulation, gains and income within the qualifying contract are not currently taxed; supported benefits are taxed downstream during payout under the individual rules then applicable.

Eligibility has expanded, but it is still not equivalent to “everyone living in Germany.” Alongside groups such as employees subject to German statutory pension insurance, the new rules generally include qualifying self-employed traders and specified freelance professionals who have filed a tax return, as well as compulsory members of professional pension schemes who satisfy data-consent requirements. Nationality alone neither creates nor removes entitlement. Expats should confirm their German tax and social-security position, especially after cross-border work, secondment, unemployment or a move.

What happens to existing Riester contracts?

Existing Riester contracts concluded before 1 January 2027 receive grandfathering. They do not terminate, convert or transfer automatically. The owner can continue the contract and old support rules, subject to its terms and continuing eligibility. New contracts under the old Riester model cannot be concluded from 2027, according to the Federal Government’s Riester transition summary.

An owner has several possible paths:

1. keep and continue contributing to the old Riester contract under grandfathered support;
2. make the old contract paid-up and leave its assets in place;
3. retain the old contract terms but irrevocably opt into the new support system; or
4. transfer to a new Altersvorsorgedepot or guarantee contract under the new conditions.

A transfer can preserve past support without forcing repayment, but switching, acquisition and distribution costs may arise. The BMF explicitly says switching is voluntary. It also notes that choosing the new support rules cannot later be reversed back into old support. Starting an additional new retirement contract can also end old-support grandfathering, so this is not a decision to make by opening an account casually.

Compare the old contract’s guarantees, current surrender or transfer value, bonuses, costs, fund choices, remaining term and projected payout against the new product. A weak old contract is not automatically improved by switching after new acquisition costs; a valuable old guarantee should not be surrendered without pricing what is lost. Conversely, “grandfathered” does not mean “best.”

Within the new system, later provider changes should become easier. Acquisition costs must be spread over the accumulation period; from five years after contract conclusion, the outgoing provider must allow the switch without a charge, while the receiving provider may charge an administration amount of up to €150. A change is also possible at the start of payout. Confirm how assets are sold or transferred, time out of market, and any fund or transaction costs not captured by a single headline.

Payout phase, tax and access to the money

At the start of payout, the saver can choose between:

• a lifelong annuity, paying a monthly amount for life; or
• a fixed-term withdrawal plan that runs at least until the saver reaches age 85, with a longer term permitted.

A lifelong annuity protects against outliving the payment stream, but the basic annuity ends at death and is not itself inheritable. Optional 10- or 20-year guarantee periods can continue payments to beneficiaries during that period. Under a withdrawal plan, undistributed assets remain inheritable; when the plan is exhausted, however, no further payments follow. These mechanics are explained in the BMF’s payout-phase FAQ.

The earliest normal payout start is generally age 65 and the latest age 70, subject to the individually agreed contract date and exceptions where specified statutory or public-service retirement benefits begin earlier. Up to 30% of available capital may be taken once at the start of payout without being treated as harmful use. Other limited compliant uses include qualifying home-ownership retirement purposes and cashing out a small pension under the statutory threshold.

Early access outside the permitted cases generally constitutes harmful use and can trigger repayment of allowances and separately determined tax benefits attributable to the amount. This restriction is central to the bargain: tax support is provided for retirement saving, not a liquid emergency fund. Build accessible cash reserves separately.

Benefits attributable solely to supported contributions—including allowances, returns and appreciation—are fully subject to downstream taxation. Benefits attributable to unsupported contributions are treated differently, and mixed contracts must be apportioned. Retirement outside the EU/EEA needs particular care: the BMF states that residence outside the EU/EEA from the start of payout can trigger harmful-use consequences and repayment, including where a tax treaty treats the person as resident outside that area. Expats should obtain cross-border advice well before relocating.

How to compare providers in 2027

Do not rank offers by allowance: statutory entitlement does not become larger because a provider advertises it more prominently. Compare the contract that delivers the support.

Investment and risk

• Which ETFs, funds and asset classes are actually eligible?
• Is there global diversification, or material home, sector or currency concentration?
• Can you change allocation, and what trading restrictions or charges apply?
• For the standard depot, what are the two funds and exact de-risking schedule?
• For a guarantee product, what precisely is guaranteed, by whom and when?

Total cost

• What are the effective costs shown in the standardised product information?
• Which account, fund, transaction, advice, acquisition and payout costs sit behind that figure?
• Are performance fees, spreads or switching charges relevant?
• How do costs change if contributions pause or the contract is transferred?

The 1.0% effective-cost ceiling applies to the Standarddepot, not as a universal promise that every new product costs no more than 1%. Even within the ceiling, small differences compound over decades.

Flexibility and service

• Can contributions be increased, reduced or paused without penalty?
• How does provider switching work before and at payout?
• Is English documentation and support available, while recognising that German contract terms control?
• What reporting is provided for tax, allowances and the Digital Pension Overview?
• What happens after moving abroad or becoming ineligible?
• Which annuity and withdrawal-plan options are available, and at what conversion terms?

Providers must make standardised product data available to third parties, laying groundwork for comparison platforms, according to the BMF brochure. Use that data, but do not reduce a multi-decade decision to one star rating. For help coordinating the account with other investments and pension rights, Finanz2Go explains its approach to investment portfolios in Germany and financial planning for expats.

Altersvorsorgedepot versus Frühstart-Rente

These initiatives are connected but not interchangeable.

The Altersvorsorgedepot reform is enacted and opens a product framework from 1 January 2027 for eligible retirement savers making their own contributions and receiving the applicable allowances and tax treatment.

The Frühstart-Rente, by contrast, was still a separate government bill approved by the Cabinet as at 12 August 2026. The plan provides €10 per month from the state for children between ages 6 and 18, starting with the 2020 birth cohort, into an individual market-funded retirement depot. Where parents do not open one, the plan provides for collective investment administered by the Deutsche Bundesbank, with a claim transferable into an individual retirement contract by age 35. Those are the Government’s proposed mechanics, described in its August 2026 Frühstart-Rente announcement; they should not be presented as already operating law until that separate legislative process is complete.

The intended connection is a later transition from the child’s start capital into the reformed private-pension system. The €10 monthly Frühstart payment is not the same as the adult basic allowance, child allowance or one-off under-25 career-starter bonus. Do not add all of them to an illustration unless the person and contribution year independently satisfy every rule.

Checklist before opening or switching

1. Confirm legal and personal eligibility. Identify why you qualify directly or indirectly and which German tax, pension-insurance or professional-scheme records are required.
2. Define the objective. Estimate the retirement-income gap alongside statutory, occupational and foreign pension rights.
3. Keep liquidity separate. Do not place emergency or near-term house-purchase money into a restricted retirement contract.
4. Choose the risk category deliberately. Compare no guarantee, 80% guarantee and 100% guarantee in real, after-cost terms.
5. Inspect the investments. Read the fund list, diversification, risk indicator and lifecycle or de-risking method.
6. Verify the product is certified. Remember that certification is regulatory qualification, not an endorsement of value or performance.
7. Calculate allowances accurately. Use actual annual personal contributions, qualifying children and direct or indirect entitlement; do not rely on a maximum headline.
8. Read all costs. Include acquisition, advice, fund, account, transaction, transfer and payout costs.
9. Model bad markets. Test a major decline shortly before payout and understand how the chosen product responds.
10. Review payout choices. Compare lifelong income with a plan lasting at least to age 85, inheritance and longevity risk.
11. Audit an existing Riester first. Record guarantees, current value, costs, bonuses and tax consequences before giving up grandfathering.
12. Check international plans. Consider future emigration, treaty residence, currency and foreign tax reporting before committing.
13. Retain documents. Save the application, product-information sheet, investment list, cost disclosure, eligibility records and switching correspondence.
14. Review periodically. Revisit contributions, beneficiaries, asset allocation and retirement date after career, family or residency changes.

Frequently asked questions

Is the Altersvorsorgedepot definitely starting in 2027?

The reform is enacted, and providers may offer new products from 1 January 2027. Availability of a particular provider or feature may differ because firms must complete certification and implementation.

Can I buy any ETF I want?

No. The contract must follow the legally permitted asset list and the provider’s menu. An Altersvorsorgedepot can include ETFs, but it is not an unrestricted brokerage account.

Is my money guaranteed in a Standarddepot?

No. The Standarddepot is a simplified no-guarantee Altersvorsorgedepot. Its statutory defaults and 1.0% effective-cost cap do not insure its market value.

How much is the maximum basic allowance?

For a directly eligible saver, the maximum is €540 annually: €0.50 per euro on the first €360 contributed and €0.25 per euro on the next €1,440, reaching €1,800 of personal contributions. Minimum-contribution and eligibility conditions still apply.

Does every parent automatically receive €300 per child?

No. One eligible parent receives €1 of child allowance per €1 personally contributed, up to €300 per qualifying child and year. A lower contribution produces a lower child allowance, and the child-related requirements must be met.

Must I switch my Riester contract?

No. Existing contracts are grandfathered and can continue. Switching to a new product or opting into new support is voluntary and may have irreversible and cost consequences.

Can I transfer a Rürup pension into the new depot?

No transfer from a Basisrente or Rürup contract into the new private-retirement product is provided. Rürup belongs to a different pension pillar and has statutory non-transfer and non-capitalisation restrictions, as the BMF explains in its reform FAQ.

Can I withdraw the full balance whenever I leave Germany?

Not without potential consequences. Non-compliant early withdrawal generally triggers repayment of support. Residence outside the EU/EEA during payout can also trigger special repayment rules. Obtain personal tax advice before moving.

Is a lifelong annuity mandatory?

No. The new system permits either a lifelong annuity or a fixed-term withdrawal plan lasting at least until age 85. The two choices allocate longevity and inheritance risk differently.

Is the Frühstart-Rente already part of my allowance?

No. It is a separate child-focused proposal with its own €10 monthly state payment and, as at 26 August 2026, a separate bill that had been approved by the Cabinet. It is designed to connect later with the new private-pension products but is not the adult basic allowance or child allowance.

Final perspective

The Altersvorsorgedepot modernises German supported private retirement saving by allowing certified market investment without a capital guarantee. That can improve return potential, but it transfers investment risk more visibly to the saver. Guarantee products remain available, and the Standarddepot offers a simpler default rather than a risk-free answer.

For expats, the most important questions go beyond “Which ETF?” Eligibility can depend on German pension and tax status; an international move can change the consequences; and an existing Riester guarantee may have value that a new product does not replace. Compare the complete lifecycle—contribution, allowance, tax, investment, cost, transfer and payout—before acting.

This article provides general information only. It is not personalised investment, pension, legal or tax advice, and it does not promise eligibility, performance or a particular tax outcome. Use the final provider documents, current official rules and advice appropriate to your circumstances.

Official sources

• Federal Ministry of Finance: Questions and answers on the reform of supported private pensions
• Federal Ministry of Finance: Reform of private pensions brochure, June 2026
• Federal Government: Private-pension reform questions and answers
• German Bundestag: Parliament approves the Altersvorsorgedepot
• German Bundestag Finance Committee: recommendation and report, Bundestag paper 21/4996
• Federal Government: Cabinet bill for the Frühstart-Rente, 12 August 2026

Official sources and further reading

• Federal Ministry of Finance: Reform FAQ
• German Bundestag: Altersvorsorgedepot decision

Continue your financial planning

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