The retirement provision depot (Altersvorsorgedepot) is the new, state-subsidised product for private old-age provision, intended to replace the Riester pension. It is a depot into which you pay voluntary contributions of your own, and which receives a state subsidy (Zulage). The reform has been passed, and the products are expected to come onto the market from 2027.
Short answer: The retirement provision depot is a new old-age provision product intended to replace the Riester pension. The Bundesrat approved the reform on 8 May 2026. Under the current reform status, the subsidy is 50 cents per euro of your own contribution up to €360, and 25 cents per euro up to €1,800. The subsidy is capped at €540 a year. Last updated: October 2026.
The key points in brief
- The retirement provision depot is a depot for private old-age provision and is intended to replace the Riester pension.
- The Bundesrat has approved the reform, and the start is planned for 2027.
- Under the current reform status, the basic subsidy is capped at €540 a year.
- For the standard product, costs are capped at 1 percent under the current reform status.
- Whether a product is worthwhile depends on your income, the term and the costs.
What exactly is the retirement provision depot?
The name refers to a depot in which you invest your own contributions towards your retirement. The state adds a subsidy that is linked to your own contribution. The specific forms of investment and cost rules are determined by each product within the statutory framework. If you compare retirement provision depots, read the product conditions as well as the subsidy.
How high is the subsidy under the reform status?
The basic subsidy follows a scale: 50 cents per euro of your own contribution up to €360, and then 25 cents per euro up to €1,800. The table shows worked examples (assumptions) without a child subsidy and without any other subsidies. Last updated: October 2026, reform status.
| Own contribution per year | Basic subsidy (worked example, assumption) |
|---|---|
| €360 | €180 |
| €1,000 | €340 |
| €1,800 | €540 |
| €2,400 | €540 (maximum amount of the basic subsidy) |
For children, there is an additional child subsidy. Under the reform status, it amounts to up to €300 per child and year. The child subsidy is added to the basic subsidy and is not part of the table.
When can it make sense, and when not?
The subsidy is linked to your own contribution. If you pay in less, you receive less subsidy. If you choose a product only because of the subsidy, you should still check the costs, the term and the rules for payouts in old age. For students, the topic is mainly a starting point for later. If you pay in a small amount early, you can compare the conditions at your leisure once the products are available.
Which costs should you watch?
Under the reform status, the maximum effective costs of the standard product fall from 1.5 to 1 percent. Other products may differ. Ask about the cost ratio and compare it with the figures in the provider’s documents.
Frequently asked questions
Can I take out a retirement provision depot now?
The start is planned for 2027. Before the products launch, the final offers cannot be fully foreseen. Ask providers what they will offer from 2027, and request the conditions in writing.
What happens to an existing Riester pension?
For existing Riester contracts, ask your provider about the transitional rules. Switching is a case-by-case decision that depends on the contract terms and costs.
Is the retirement provision depot compulsory?
No. Taking part in private old-age provision is voluntary. The subsidy is a state allowance, not a compulsory contribution.
How are payouts taxed?
Taxation in old age depends on the type of payout and on the product. The details of the reform status have not been fully verified. For specific questions, rely on the statute and, when it becomes concrete, on tax advice.
Related reading
- Retirement provision for students: starting early with small amounts
- Tax return for students: how to get your money back
- Glossary: Versorgungswerk explained simply
- Glossary: Rentenpunkte explained simply
Sources: Bundesrat, printed paper 445/26 on the reform of private retirement provision (last updated: October 2026), Otto Schmidt: news report on the Bundesrat’s approval of 11 May 2026 (last updated: May 2026).
Last updated: October 2026. This guide is general information, not individual advice.
