Germany Financial Glossary
Learn the definitions of key financial terms, tax acronyms, and mortgage jargon commonly used in Germany. Updated for 2026.
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Aktivrente (Active Pension)
TaxA 2026 German tax exemption allowing working retirees to earn up to €2,000/month (€24,000/year) completely free of income tax on active employment earnings.
View full definition →Altersvorsorgedepot
RetirementGermany’s new state-subsidised private retirement depot due to be offered from January 2027, allowing eligible investments without a mandatory capital guarantee.
View full definition →Altersrückstellungen
RetirementAge-related reserves within German private health-insurance premiums that smooth later costs; portability depends on contract date and whether the move is within or between insurers.
View full definition →F
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German financial terms for the Aktivrente and Altersvorsorgedepot era
Germany introduced the Aktivrente exemption of up to €2,000/month for eligible work after regular retirement age in January 2026. The Frühstart-Rente remains an August 2026 cabinet bill with first child-depot payments planned in 2027, while providers may offer enacted Altersvorsorgedepot products from January 2027. The KVdR nine-tenths test can change which retirement income enters GKV contribution calculations; the amount depends on each person's income and fund.
Aktivrente and Frühstart-Rente: the new pension tools
After reaching the **applicable regular retirement age**, an eligible employee may exempt up to €2,000 of wages **per month** under Aktivrente (§3 no. 21 EStG); the annual maximum reaches €24,000 only if all twelve months qualify. Social contributions still depend on insurance status, and tax saved needs a full return. The Frühstart-Rente remains a bill in September 2026: first payments are planned for 2027, with retroactive 2026 credit for the 2020 birth cohort. Twelve years of €10/month would contribute €1,440; [BMF](https://www.bundesfinanzministerium.de/Content/DE/Pressemitteilungen/Finanzpolitik/2026/08/2026-08-12-regierungsentwurf-fruehstartrente.html) illustrates about €53,000 by 65 only at a hypothetical 7% return.
Altersvorsorgedepot: Riester's successor from 2027
The Altersvorsorgedepot offers an eligible no-guarantee investment option alongside guaranteed products. The certified standard product has a **1% effective annual cost ceiling**, not 0.50%. For each eligible saver, €1,800 own annual contribution can yield €540 basic subsidy; an eligible child can add up to €300. Tax deductions are subject to the favourable-treatment comparison with allowances, so they cannot simply be added as another full separate benefit. [BMF FAQ](https://www.bundesfinanzministerium.de/Content/DE/FAQ/reform-der-privaten-altersvorsorge.html) explains the 2027 start and terms.
KVdR vs PKV: the retirement health insurance decision
The KVdR 9/10 rule requires qualifying GKV coverage for 90% of the second half of working life, with three credited years per eligible child. Compulsory KVdR contributions can include statutory and occupational pensions and qualifying work income; voluntary GKV can also assess rental/capital income. The 2026 €5,812.50 monthly ceiling and fund rates matter, so there is no standard €1,500–€3,600 yearly gap. For employees, the 2026 PKV choice threshold is €77,400 annual pay; PKV age-reserve and portability rules depend on contract date. [BMG](https://www.bundesgesundheitsministerium.de/beitraege/seite) explains the contribution categories.