The minimum contribution to a pension depot (Altersvorsorgedepot) is the smallest yearly savings amount the contract provides for under the reform. The reform has been passed and is due to apply from 2027. For students and career starters, what matters most is how early a contract starts, what it costs and which state allowances apply.
Short answer: The reform provides for a minimum own contribution of 120 euros a year (retrieved October 2026, source finanz.de, referring to the Altersvorsorgereformgesetz, Federal Law Gazette 2026 I No. 156). The basic allowance (Grundzulage) is 50 cents per euro up to 360 euros of own contribution, and at most 540 euros a year in total. The reform is expected to apply from 1 January 2027. Check the status of promulgation before you sign.
The key points in brief
- The Bundestag passed the reform on 27 March 2026, and it is expected to apply from 1 January 2027.
- The minimum own contribution is 120 euros a year. That is 10 euros a month (status October 2026, source finanz.de).
- The basic allowance is 50 cents per euro up to 360 euros of own contribution. In total, at most 540 euros of allowance a year is provided.
- Anyone who opens a contract before their 25th birthday may receive a one-off career starter bonus (Berufseinsteigerbonus) of 200 euros.
- A pension depot is not a savings account. Price fluctuations, costs and payout rules determine the return.
What is the pension depot, anyway?
A pension depot is a state-subsidised account for private old-age provision. You pay in regularly, the state adds an allowance, and the money is invested until retirement begins. The model is intended as a supplement to the statutory pension. It does not replace it and is not enough for full old-age security on its own.
Providers and investment options differ widely. That is why it pays to look at costs, investment strategy and switching options before you choose a contract. For the basics of building provision as a student, see Building Wealth as a Student: Starting Small.
How high is the subsidy for you?
The basic allowance depends on your own contribution. Up to 360 euros a year, you receive 50 cents per euro. For further contributions, the reform provides a lower rate of 25 cents per euro, up to the ceiling of 540 euros of allowance a year. The exact calculation is set out in the law, and you should check it for a concrete contract.
| Own contribution a year | Basic allowance (50 cents per euro) | Classification |
|---|---|---|
| 120 euros | 60 euros | Minimum own contribution under the reform |
| 240 euros | 120 euros | Assumption: 20 euros a month |
| 360 euros | 180 euros | Ceiling for the 50 percent subsidy |
Assumption for a worked example: you pay in 30 euros a month, which is 360 euros a year. The basic allowance is then 50 percent of 360 euros, that is 180 euros. Your contract thus grows by 540 euros a year, made up of 360 euros of your own payments and 180 euros of allowance. Costs and price fluctuations affect this, but they are not included in this calculation.
When does a pension depot suit students, and when does it not?
The decision depends on your situation. The points below help you place it, without deciding the outcome for you.
It tends to suit you if
- you regularly have a small amount left over that you do not need for rent or living costs,
- you can invest over many years and can tolerate price fluctuations,
- you want the allowance and find the providers’ terms clearly comparable.
It tends not to suit you if
- you need the money at short notice or have not yet built up an emergency fund,
- costs, investment strategy or payout rules are unclear to you,
- your budget only just covers rent and living costs, and every payment hurts.
An emergency fund generally takes priority over old-age provision. How to plan your monthly costs is shown in Budget Planning for Students: A Monthly Plan in 3 Steps.
What changes compared with the Riester pension (Riester-Rente)?
Until the reform, the Riester rules apply to subsidised private provision. The basic allowance is 175 euros a year, and the minimum own contribution is 4 percent of the previous year’s income, capped by maximum amounts (current law, Sections 84 and 86 of the Income Tax Act, EStG). Existing Riester contracts continue. Whether a switch or a new contract suits you depends on income, costs and goals.
| Feature | Riester (current law) | Pension depot (passed reform) |
|---|---|---|
| Basic allowance | 175 euros a year | 50 cents per euro up to 360 euros of own contribution, at most 540 euros a year |
| Minimum own contribution | 4 percent of previous year’s income, with a ceiling | 120 euros a year |
| Validity | current law | expected from 1 January 2027 |
What should you clarify before signing?
- costs for conclusion, administration and custody, and how they affect returns,
- investment strategy and price risk, that is, whether you invest with a focus on safety or on returns,
- options to switch to another provider, and the consequences for the allowance,
- rules on payout and the start of pension payments, including taxation in retirement,
- how the contract fits with your training and your later income.
Frequently asked questions
From when can I use the pension depot?
Expected from 1 January 2027, provided the reform takes effect as planned. Before you sign, check the status of promulgation in the Federal Law Gazette and the information from the responsible bodies. There is no guarantee of the start date.
Do I have to pay the 120 euros a year?
According to the information on the legislative status, the minimum own contribution is 120 euros a year. What happens if you pay less is not clearly described in the sources we reviewed. Ask the provider and read the law before you set an amount.
Is the career starter bonus worth it if I start later?
Under the current status of the reform, the bonus applies only to a contract concluded before your 25th birthday. If you start later, you do not receive the one-off amount. That is one reason to deal with the topic early, even if the contract starts small.
Is the money in a pension depot safe?
That depends on the product. A depot can fluctuate with the capital markets, and its value can fall temporarily. Longer holding periods tend to smooth out fluctuations, but there is no guarantee, unless the product expressly provides one.
Can I simply keep my Riester contract?
Yes. Existing Riester contracts continue, and their subsidy remains. Whether you direct new contributions into a pension depot is best decided with the current figures from your own contract.
What to do now
- Check whether you can regularly set aside at least 10 euros a month without touching your emergency fund.
- Wait to sign until the reform has been promulgated and the subsidy rules are settled.
- Compare costs, investment strategy and switching options, not only the size of the allowance.
- Get the terms in writing and read them in full before you sign.
- If you are unsure, you can get personal advice from Academycon: How we work (in German).
Related reading
- Retirement Provision for Students: Starting Early With Small Amounts
- Pension Insurance for Students in Germany: Rules
- Career start after graduation: how to get off to a good start (in German)
- Tax Benefits for Students in Germany: What You Can Claim
Sources: Bundesrat printed paper 445/26 on the pension reform (retrieved October 2026); finanz.de, pension depot, minimum own contribution of 120 euros a year (retrieved October 2026, not an official source) (in German); Section 84 EStG, Riester basic allowance (Gesetze im Internet, current law, retrieved October 2026).
Last updated: October 2026. This guide is general information, not individual advice.
