Short answer: The child allowance in the Altersvorsorgedepot, Germany’s new state-subsidised private pension depot, is at most 300 euros per child and year, according to the budget committee report of the Bundestag. The reform has been adopted and applies from 1 January 2027 (last updated: November 2026). The contribution needed for the full allowance follows from the law and from the provider’s contract terms.
The Altersvorsorgedepot is set to replace the current Riester subsidy for new contracts from 1 January 2027. For parents the child allowance matters most, because it is paid for each child rather than once per household. This guide explains how high the child allowance can be under the adopted law, who can receive it and what to check before you decide.
The most important points
- The maximum child allowance is 300 euros per child and year.
- With two children, the maximum is 600 euros of child allowance per year.
- The reform has been adopted by the Bundestag and applies from 1 January 2027. The previous rules continue to apply for 2026.
- The allowance requires an own contribution. Check the law and your contract for the minimum contribution that secures the full amount.
- The child allowance is part of the subsidy for the pension contract. It is not the same as the Frühstart-Rente (in German) that the state sets up for children.
How high is the child allowance in the Altersvorsorgedepot?
The child allowance is paid for each child and comes on top of the basic allowance of the person entitled to the subsidy. For new contracts from 2027 the rule of the reform applies. Existing Riester contracts continue to follow the earlier provisions.
| Feature | Figure | Status | Source |
|---|---|---|---|
| Maximum per child | 300 euros per child and year | Decision of the Bundestag, report of the budget committee | Printed paper 21/4997 |
| Applies from | 1 January 2027 | Adopted reform, status November 2026 | Pension contract certification act, amended version |
| Previous rule for Riester | Child allowance under section 85 EStG | Current law until the contract changes or ends | Section 85 EStG |
Who receives the child allowance?
The child allowance is tied to the pension contract of the person entitled to the subsidy. Under the existing rule in section 85 EStG, what matters is for which child a parent receives child benefit (Kindergeld). Whether this link stays the same under the new law is something to check in the statutory text before you sign a contract.
The budget committee also notes that self-employed persons will be included in the group entitled to the subsidy. If you are a self-employed parent, do not assume that the subsidy only applies to employees. The answer in an individual case depends on the final wording of the law and on your personal circumstances.
Which own contribution is needed?
The allowance is paid on own contributions, so without a contribution there is no allowance. The law sets out how high the contribution must be for the full child allowance. Ask your provider in writing which contribution is needed for the full amount and how it changes if your income changes.
Worked example at the maximum
Assumption: two children are eligible, and the maximum is paid for each of them. The actual allowance may be lower if the contribution does not meet the requirements.
| Item | Amount per year | Amount per month |
|---|---|---|
| Child allowance, child 1 | 300 euros | 25 euros |
| Child allowance, child 2 | 300 euros | 25 euros |
| Total | 600 euros | 50 euros |
The calculation shows only the upper limit. It does not replace the provider’s calculation based on your own contribution.
Child allowance or Frühstart-Rente?
Both subsidies concern children and retirement provision, but they work differently. The Frühstart-Rente is a separate state benefit for children. The child allowance belongs to the contract of the parent. If you look at both, assess them separately instead of offsetting one against the other. The German guide on the Frühstart-Rente (in German) explains the differences in detail.
A tax view of the subsidy
The allowance is not the only tax factor. If you can deduct contributions as special expenses, check whether the deduction or the allowance is more favourable for you. The tax office carries out this comparison when it assesses your return, known as the favourability test. Details on the tax treatment are in the German article on tax deductibility (in German).
What you can do now
- Find out for which children you receive child benefit, because the allowance is linked to it.
- Ask the provider to show you the calculation of the contribution that triggers the full child allowance.
- Compare the costs of the contracts, because they noticeably affect the return on the contract.
- Check whether an existing Riester contract continues or whether you want to switch before you sign a new contract.
Frequently asked questions
Do I automatically get 300 euros per child?
No. The figure is a maximum. The allowance depends on your eligibility and on the own contribution you pay into the contract.
Does the child allowance already apply in 2026?
Under the adopted law the new Altersvorsorgedepot starts on 1 January 2027. For 2026 the existing rules of the Riester subsidy remain decisive.
Is the child allowance part of the Frühstart-Rente?
No. The two are separate subsidies. The Frühstart-Rente is a state benefit for children, while the child allowance belongs to the contract of the parent.
Where can I find the relevant provisions?
The rules are in the pension reform act and in the Income Tax Act (EStG). The sources below lead to the references used in this article. The version in force at the time of your decision is always the binding one.
Is the Altersvorsorgedepot worth it for families?
There is no general answer. Whether a contract pays off depends on income, own contribution, costs and investment strategy. The overview in the hub article helps you classify the options.
Why the child allowance is tied to the contract
The child allowance flows into the pension contract and is not transferred to your current account. This has practical consequences. The subsidy depends on the contract, so check before you switch provider whether the allowance continues in the new contract. Changing provider is not the same as ending a contract, but the conditions can differ.
It is also worth clarifying who in the household receives the allowance. If both parents hold a contract, it should be clear in writing for each child which contract receives the allowance before the first contribution is paid.
Related articles
- Retirement provision 2027: the overview of depot, Frühstart-Rente and Riester
- Calculating the Altersvorsorgedepot allowance: 50 cents per euro up to 360 euros
- Altersvorsorgedepot allowance: who can receive it and who cannot
- Altersvorsorgedepot: from which income it pays off
- Frühstart-Rente or a savings plan for the child: which is better?
Sources: Bundestag, printed paper 21/4997, report of the budget committee (2026), Pension contract certification act in the version amended by the pension reform act (version applying from 1 January 2027), Section 85 EStG, child allowance (version in force).
Last updated: November 2026. This guide is general information, not individual advice.
