Occupational pension or Altersvorsorgedepot (retirement savings account)? From 2027 this question comes up more often for career starters, because the Altersvorsorgedepot is due to start and occupational pensions have new rules under the second Betriebsrentenstärkungsgesetz. There is no blanket answer. What matters is the employer top-up, subsidies, flexibility and your situation. This guide compares both routes using settled rules. The comparison of the Altersvorsorgedepot with an ETF savings plan is in Altersvorsorgedepot or ETF savings plan.
In short: An occupational pension (Betriebsrente) pays off especially if your employer adds 15 percent of the converted amount as a top-up or more. From 2027 the Altersvorsorgedepot offers a state basic allowance of up to 540 euros a year and is independent of your employer. The two routes are not fundamentally exclusive, but the subsidy rules should be checked before signing. Last updated: November 2026.
Key points at a glance
- Occupational pension: right to salary conversion up to 4 percent of the contribution ceiling, employer top-up of 15 percent if the employer saves social contributions.
- Altersvorsorgedepot: Bundestag decision of 27 March 2026, Bundesrat approval on 8 May 2026, start expected on 1 January 2027.
- Subsidy in the depot: 50 cents per euro on the first 360 euros, 25 cents per euro on a further 1,440 euros, at most 540 euros a year, plus up to 300 euros child allowance.
- The occupational pension depends on your employer; the depot is an individual contract.
- Both routes have advantages and drawbacks, and the decision belongs in your personal planning.
What does an occupational pension offer?
You can require your employer to convert up to 4 percent of the contribution ceiling of the general pension insurance into an occupational pension. If the employer saves social insurance contributions as a result, it must pay 15 percent of the converted salary as a top-up (Section 1a BetrAVG, as of October 2026, in German). Contributions are tax-free up to 8 percent of the contribution ceiling (Section 3 no. 63 EStG, as of October 2026, in German), which for 2026 at a ceiling of 8,450 euros a month is 8,112 euros a year. Up to 4 percent is free of social contributions, calculated at 338 euros a month for 2026.
The second Betriebsrentenstärkungsgesetz changed the framework, among other things for the social partner model, opting-out and transfers when the provider changes. The details are in Betriebsrentenstärkungsgesetz II. Your entitlement is vested if you leave after turning 21 and the commitment has existed for at least three years (Section 1b(1) BetrAVG).
What does the Altersvorsorgedepot offer?
The Altersvorsorgedepot is the adopted reform of subsidised private provision. According to the available information: Bundestag decision on 27 March 2026, Bundesrat approval on 8 May 2026, start expected on 1 January 2027 (DRV, Altersvorsorge reform act, as of October 2026, in German). The basic allowance is 50 cents per euro on the first 360 euros of own contribution and 25 cents per euro on the further 1,440 euros, at most 540 euros a year on an own contribution of 1,800 euros. In addition there is a child allowance of up to 300 euros per child and a one-off career starter bonus of 200 euros if you sign before turning 25. Existing Riester contracts continue. More on the allowances: Calculating the Altersvorsorgedepot allowance.
Important: the depot is not yet on the market. Specific products, costs and providers will only be known at the start. Compare only once the contract documents are available.
How do they differ at a glance?
| Criterion | Occupational pension | Altersvorsorgedepot |
|---|---|---|
| Legal basis | BetrAVG, EStG | Altersvorsorge reform act, start expected 1 January 2027 |
| State or employer support | Employer top-up of 15 percent where social contributions are saved, tax and contribution benefits while saving | Basic allowance up to 540 euros a year, child allowance up to 300 euros per child, career starter bonus 200 euros |
| Dependence on employer | yes, the employer decides on the offer and the route | no, individual contract |
| Changing jobs | Vesting after age 21 and three years of commitment, transfer under the new law | Contract stays with you; changing provider is a separate topic |
| Payout | Pension benefits on which contributions to health and long-term care insurance may be due | Payout plan rules, see separate guide |
| Status of the rules | current law | adopted, not yet in force |
On contributions in retirement, read Occupational pension and health insurance and Payout plan over 20 years in the Altersvorsorgedepot.
What does a worked example look like?
An example with assumptions, without calculating tax in euros: you put aside 150 euros a month, so 1,800 euros a year. In the Altersvorsorgedepot that earns the full basic allowance. It works out like this: 360 euros times 50 cents is 180 euros, 1,440 euros times 25 cents is 360 euros, together 540 euros. In an occupational pension, 150 euros of salary conversion a month would trigger an employer top-up of 15 percent, that is 22.50 euros a month or 270 euros a year, provided your employer saves social contributions. In addition, tax and social contributions do not apply to the converted part of the gross salary. The size of the net relief depends on your salary; the federal finance ministry’s contributions calculator offers a comparison.
The example shows no ranking. It shows that the two routes have different levers: top-up and contribution benefit on one side, allowance and flexibility on the other. Whether and how both can be combined and whether subsidies overlap is governed by the allowance rules. Clarify this before signing.
When does which option fit better?
- The occupational pension fits better if your employer pays a top-up above the statutory minimum, you plan to stay longer and the route is transparent.
- The Altersvorsorgedepot fits better if your employer offers no occupational pension, you change jobs more often, you have children or you want to steer your provision yourself.
- Both fit less well if you will need the money in the next few years, because the funds are tied up long term.
- If you want to vary contributions, look at contribution flexibility and costs in the specific contract.
Frequently asked questions
Can I use an occupational pension and the Altersvorsorgedepot at the same time?
In principle they are two separate routes. Whether allowances and tax support overlap in an individual case depends on the allowance rules and your situation. Clarify this before signing.
Is the Altersvorsorgedepot already available?
No. The reform has been adopted; according to the available information the start is expected on 1 January 2027. Market-ready products can only be compared afterwards.
What happens to the occupational pension when I change jobs?
Under Section 1b BetrAVG the entitlement is kept if you leave after turning 21 and the commitment has existed for at least three years. The second Betriebsrentenstärkungsgesetz also provides a right to transfer when the provider changes.
Is an occupational pension worthwhile without an employer top-up?
That depends on your tax and contribution benefit, the contract costs and your planning. As soon as social contributions are saved, Section 1a BetrAVG gives a right to the 15 percent top-up. Ask what your employer actually pays.
What to do next
- Ask your employer about the route, top-up and costs of the occupational pension.
- Note what amount you can plan for provision on a permanent basis.
- For the Altersvorsorgedepot, wait for concrete product documents and check costs and providers.
- Clarify the subsidy rules before you combine both.
- If needed, get a personal assessment, for example through Academycon.
Related guides
- Retirement provision 2027: Overview of custody account, Frühstart-Rente and Riester
- Altersvorsorgedepot 2027: Subsidy and bonus for young people
- Occupational pension in your first job: employer top-up
- Take out the Altersvorsorgedepot now or wait until 2027?
- Retirement provision for students: Starting early with small amounts
Sources: Occupational Pensions Act (BetrAVG) (as of October 2026, in German), Section 3 EStG, tax exemption under no. 63 (as of October 2026, in German), Deutsche Rentenversicherung: Altersvorsorge reform act (as of October 2026, in German), Deutsche Rentenversicherung: statutory reference values 2026 and 2027 (as of October 2026, in German).
Last updated: November 2026. This guide is general information, not individual advice.
