From 1 January 2027, providers may offer Germany's reformed private Altersvorsorgedepot as an alternative to new Riester-style products. Parliament approved the reform in March 2026, not late 2025. An eligible depot may invest in suitable funds and ETFs without a compulsory capital guarantee, but existing Riester contracts are not abolished overnight: savers may keep them or explore permitted transfers. See the Federal Finance Ministry FAQ.
The 2027 subsidy is contribution-proportional
For each eligible saver, the basic subsidy is 50 cents per own euro for the first €360 paid in a year and 25 cents per euro on the next €1,440. On €1,800 personal contribution that is €180 + €360 = €540 maximum basic subsidy, subject to eligibility and minimum own contribution. A parent can receive up to €300 per eligible child on a corresponding €300 own contribution. Tax authorities compare the subsidy with any more favourable special-expense deduction; do not add a full €3,600 tax deduction to the cash subsidy as if both were independent.
Stefan and Lisa’s contribution example
If both are individually eligible and each contributes €1,800 of their own money, they put in €3,600. Their two basic subsidies could total €1,080; if both children qualify and one eligible parent receives two €300 child subsidies, the allowance total is €1,680. The deposits including allowances could then be €5,280. Stefan and Lisa still paid €3,600 themselves, not €1,920: subsidies add to the contracts rather than refund their own contributions automatically.
Costs, investment risk and projections
Actual fund costs and provider terms still matter. A 7% ETF return for 30 years is a scenario, not a promised advantage over every Riester contract. Use the official Bundestag reform summary to understand choices before comparing actual offers.
