In short
From 2027, new rules apply to how the state helps you save for old age. Here you can see what changes and what is not yet settled.
Last checked: 11 October 2026 · 6 min read · RenteKannMehr editorial team
Now in more detail
The Pension Reform Act (Altersvorsorgereformgesetz) reorganises state-subsidised private pension saving. The Act was passed by the Bundestag on 27 March 2026, the Bundesrat gave its consent on 8 May 2026, and it was promulgated in the Federal Law Gazette (Bundesgesetzblatt) on 29 May 2026. The new subsidy and product rules apply from 1 January 2027.
Legal status
The Act has been passed and promulgated, but the central rules cannot be applied yet. Until the end of 2026 the existing Riester subsidy applies. Everything said here about 2027 describes future law.
The most important changes
- New product: the retirement savings account (Altersvorsorgedepot) without a compulsory contribution guarantee, investing in funds and ETFs.
- Standard account (Standarddepot): a simple version with effective costs capped by law at no more than 1%.
- Guarantee products remain possible: with a contribution guarantee of 80% or 100% at the start of the payout.
- New subsidy: The allowance depends on your own contribution – 50% on the first €360, 25% on further contributions up to €1,800 a year.
- More people eligible: For the first time, self-employed people and compulsory members of professional pension schemes (berufsständische Versorgungswerke) can also be subsidised.
- More flexible payout: a lifelong pension or a payout plan that ends at age 85 at the earliest.
Old and new compared
| Up to contribution year 2026 (Riester) | From contribution year 2027 | |
|---|---|---|
| Basic allowance (Grundzulage) | €175 flat rate | 50% / 25% of the contribution, at most €540 |
| Child allowance (Kinderzulage) | €185 or €300 per child | 100% of the contribution, at most €300 per child |
| Condition for the full allowance | 4% of the previous year's income minus allowances | no income calculation; minimum own contribution €120 |
| Special expenses deduction (Sonderausgabenabzug) | up to €2,100 incl. allowances | up to €1,800 plus allowance |
| Contribution guarantee | 100% compulsory | your choice: none, 80% or 100% |
What is still open?
- It is not yet certain which providers will actually offer which products at the start of 2027.
- A publicly run standard account can be introduced by statutory order. Timing and design are open; according to the German Pension Insurance it may only be available after 1 January 2027.
- Some parts of the Act only come into force on 1 January 2028. Administrative instructions on questions of detail may still follow.
You can read what the reform means for existing contracts under What happens to existing Riester contracts?
More questions?
If you have more questions, talk to a personal adviser near you. They can look at your situation in detail. Asking is free and without obligation.