The pension depot (Altersvorsorgedepot) is the new core product of the reform that replaces the Riester pension (Riester-Rente) from 2027. It is a depot for capital market investments, and there are also variants with a guarantee. This guide explains how the subsidy works and whether there is a special bonus for young people.
Short answer: According to German Pension Insurance (DRV), the pension depot starts in 2027 as a state-subsidised product. The basic allowance is up to 540 euros a year, the child allowance up to 300 euros per child. The DRV description does not mention a separate bonus component for young adults. Status: October 2026.
The key points
- The pension depot is the new, state-subsidised form of private retirement provision from 2027. It has a variant without a guarantee and variants with a guarantee.
- According to the DRV, the basic allowance is capped at 540 euros a year. The child allowance is up to 300 euros per child.
- A standard depot is meant to cap effective costs at 1.0 percent at most. Committee recommendations to the Bundesrat ask the federal government to allow marketing of this standard product from 1 January 2027 at the latest.
- The DRV information does not name a separate bonus for young adults. Welcome bonuses from individual providers are not state subsidies.
- Starting early mainly means collecting allowances over more years. Costs and the chosen variant remain decisive.
How does the pension depot work?
The pension depot is not a single product but a family of variants. According to the DRV, the variants differ mainly in guarantee, costs and payout. The overview shows the key differences.
| Variant | What it offers | What to watch |
|---|---|---|
| Depot without guarantee | Chances of higher returns from capital market investments | The value can fluctuate and losses are possible |
| Guarantee product | At the end of the saving phase, 80 or 100 percent of contributions including allowances are available | Less room for growth, read the guarantee terms carefully |
| Standard depot | Effective costs capped at 1.0 percent | Bundesrat committees ask for marketing from 1 January 2027, details are still open |
| Payout plan | Payouts over 20 years from age 65, with the money used up by age 85 | No lifelong payment in this variant |
Source: German Pension Insurance (Deutsche Rentenversicherung), page on the pension reform, last updated 17 September 2026. On the standard product: Bundesrat document 206/1/26 of 24 April 2026, committee recommendations (in German).
What subsidy is available for young people?
The subsidy follows the allowance system. According to the DRV, the basic allowance is 50 cents per euro you pay in, up to an own contribution of 360 euros. Above that, there is 25 cents per euro up to an own contribution of 1,440 euros. The basic allowance is therefore at most 540 euros a year. The exact calculation above 360 euros is not clearly described in the DRV information, so have it checked by the Central Allowance Office (Zentrale Zulagenstelle für Altersvermögen, ZfA) or your provider before you decide.
The child allowance is only available for children who are eligible. It is 1 euro per euro paid in, up to 300 euros per child and year.
A worked example: what a start with 360 euros brings
Assumption: in the first year you pay 360 euros into a pension depot and have no child allowance. The basic allowance is then 50 percent of 360 euros, which is 180 euros. Together, 540 euros are available in the first year, before costs and investment results.
Assumption: the same calculation runs for 30 years with an unchanged own contribution. That would be 16,200 euros of contributions plus allowances in total, before returns and costs. What is actually available later depends on costs and market development.
What does this mean for young people? Bonus, start and time
The DRV information does not name a separate bonus for young adults. When providers talk about bonuses, these are usually their own offers. They do not change the state subsidy and should be compared with the total costs of the contract.
Starting early has one main advantage: you can collect allowances over many years and ride out market fluctuations if you choose the variant without a guarantee. Whether it is worthwhile for you depends on your income, your pension insurance status and how much you can save. Background is given in our guide Altersvorsorge für Studenten (in German).
Who can use the pension depot?
Under current law, eligible persons include those who are compulsorily insured in statutory pension insurance. From 2027, according to the DRV, self-employed people with trade or self-employment income and compulsory members of professional pension schemes are added. For students, the insurance status therefore matters more than age.
What to check when comparing offers
- Total costs over the term, not only the costs in the first year. Effective costs are the most meaningful comparison figure.
- Guarantee or no guarantee, and what minimum amount is actually promised at the end of the saving phase.
- Form of payout: a payout plan over 20 years or another form, and what happens if you need money earlier.
- Costs of a switch or termination. Switching between providers can trigger capped costs.
- Clarity of the documents. If you cannot explain the product terms, ask again.
Who suits the pension depot, and who should be cautious?
The pension depot is more suitable if you have a long time horizon, can handle fluctuations and want to keep collecting allowances over the long term. It is less suitable if you will need the money in the coming years, cannot absorb losses or find the provider’s cost structure unclear. In that case, a product with a guarantee or a standard offer with a cost cap may fit your situation better.
Frequently asked questions
Is the pension depot the same as the Riester pension?
No. According to the DRV, the Riester pension is replaced by the new, state-subsidised model from 2027. The pension depot is the new product form, and the Riester pension with lifelong payout no longer exists in this form.
Is there a guarantee with the pension depot?
Only in the variants with a guarantee. The depot without a guarantee can lose value. According to the DRV, the guarantee products secure 80 or 100 percent of the contributions including allowances at the end of the saving phase. The exact conditions are in the provider’s product information sheet.
Can I get allowances without children?
Yes, the basic allowance does not depend on children. It requires eligibility and an own contribution. The child allowance is paid on top, when a child is taken into account.
Do I have to decide straight away?
No, but do not delay if you want to benefit from the allowances. The sources we reviewed do not clearly state which deadlines apply. Ask the DRV or your provider.
What to do next
- Check whether you are eligible and clarify this with the DRV or the ZfA.
- Decide which own contribution is realistic for you, and use the 540 euro basic allowance as the upper limit of the basic subsidy.
- Compare variants by total costs, guarantee and payout before you decide.
- Have the allowance calculation confirmed in writing and only decide after that.
Related guides
- Riester Reform 2027: What Changes for Students and Young Professionals
- Student Job 20-Hour Rule, Pension and Semester Breaks
- Building assets during your studies (in German)
- How much money do you need as a student each month? (in German)
Sources: German Pension Insurance: pension reform (status 17 September 2026, in German) and Bundesrat document 206/1/26: committee recommendations on the Pension Reform Act (24 April 2026, in German).
Last updated: October 2026. This guide is general information, not individual advice.
