A state-subsidised pension depot (Altersvorsorgedepot) or an ETF savings plan: this is the question many new graduates will face once the new product starts. Both routes use funds and a savings plan, but they differ in subsidy, costs and access to the money. This comparison shows when each route may suit your situation.
Short answer: Last updated: October 2026. The Altersvorsorgedepot is a state-subsidised depot without a contribution guarantee. The Bundestag passed the reform in March 2026 and the Bundesrat approved it in May 2026. Providers may offer it from 1 January 2027. An ETF savings plan without subsidy is more flexible but receives no allowance. Which route fits depends on income, costs and time horizon.
The most important points
- The reform was passed by the Bundestag on 27 March 2026 and approved by the Bundesrat on 8 May 2026 (Bundestag printed paper 21/6726).
- According to the federal government, providers may offer the pension depot from 1 January 2027 or earlier.
- At the stage of the legislative report, the basic allowance was up to 540 euros a year and the child allowance up to 300 euros a year (Bundestag printed paper 21/4997, March 2026).
- An ETF savings plan without subsidy is more flexible, but it has no state allowance.
- Costs, investment choice and payout rules decide the outcome, not just the name of the product.
What the pension depot is
The Altersvorsorgedepot is a depot in which you save for retirement with state support. It is meant to replace the Riester pension. Unlike classic Riester contracts, it is not designed as a guaranteed product. The Bundestag printed paper 21/4997 describes it as a depot without guarantees for an opportunity-oriented investment, which can also be offered as a simple standard product.
The printed paper names lower costs as a goal. The actual costs only become clear from the providers’ offers after the start. So compare fees and fund costs closely, not just the subsidy.
How big is the difference in subsidy?
The central difference is the state allowance. An ETF savings plan without subsidy receives no allowance, but it also carries no special conditions. The table sets out the main points, where they are documented.
| Feature | Pension depot (from 2027) | ETF savings plan without subsidy |
|---|---|---|
| State basic allowance | Yes, up to 540 euros a year (draft status March 2026) | No |
| Child allowance | Yes, up to 300 euros a year (draft status March 2026) | No |
| Guarantee | No contribution guarantee | No guarantee |
| Access to the money | Under the rules of the new product, check before signing | Usually at any time, depending on the depot |
| Taxes on gains | Under the rules of the new law, check before signing | Capital income with a saver’s lump sum of 1,000 euros for single persons (section 20 (9) EStG) |
The allowances only apply if the legal conditions are met. Whether you as a new graduate meet all requirements is shown by the provider’s information and the law. The amounts reflect the status in the printed paper and should be checked against the final statute before you sign.
Costs and investment choice compared
The comparison should include the custody fee, savings plan costs and ongoing fund costs. A cheap fund with low total costs grows much more over decades than a product with high fees. For the pension depot, the provider’s conditions also apply, and they are reliable only once the product is on the market.
Assumption: you put aside 100 euros a month over 35 years and expect a 6 percent return before costs. Product A charges 1.5 percent a year, product B 0.3 percent. Product A then ends at roughly 97,800 euros and product B at roughly 125,500 euros, from 42,000 euros paid in. The difference of about 27,700 euros comes from costs alone. These figures are a model, not a forecast.
What counts at payout
With any pension product, the way the money is paid out ultimately decides too: as a lifelong pension, as a lump sum or as a combination. The rules are set out in the contract and in the law and differ between products. Anyone who checks this only shortly before retirement has little room to correct course.
So the payout question belongs in the comparison from the start. A product with low costs helps little if the payout is unfavourable for you. Have the payout rules explained to you in plain language and in writing before you start.
When each route tends to fit
The decision depends on your priorities. The overview shows typical situations, but it does not replace a personal check.
| Your situation | More likely the pension depot | More likely the ETF savings plan |
|---|---|---|
| You want to use state allowances | Yes, that is the core of the product | No, no allowance |
| You need flexible access | Only with a view to the rules | Yes, usually at any time |
| You have children or expect a child allowance | Can fit, check the allowances | No allowance |
| You only put in small amounts | Note the minimum contributions for the subsidy | Often possible even from small amounts |
| You want to keep costs low | Compare the conditions | Compare the conditions |
Frequently asked questions
Can I open a pension depot before 2027?
According to the federal government, providers may offer the product from 1 January 2027 or earlier (Bundestag printed paper 21/6726). Ask providers for the actual start date before you commit.
Is an ETF savings plan better than the pension depot?
This cannot be answered in general. Without subsidy, the ETF savings plan offers flexibility. With subsidy, the pension depot has the advantage of the allowances. What matters is costs, the payout rules and your time horizon.
Do I lose allowances if I save less?
In the Riester subsidy, a missing minimum own contribution leads to a reduction of the allowance (section 86 EStG). Whether the same applies to the new pension depot is set by the new law. Check this rule before you sign.
Can I combine both routes?
Yes, some savers use a subsidised product and add an ETF savings plan. The ratio depends on your budget. The German guide ETF-Sparen im Studium (in German) gives an overview of starting with ETFs.
What role does the statutory pension play?
The statutory pension remains the foundation of retirement provision, and private saving supplements it. Whether you should also take up a subsidised product depends on your expected statutory pension and on how much you can set aside otherwise. The German guide on the pension gap for academics, Rentenlücke berechnen als Akademiker, helps you widen the view.
Do I need a separate depot for both?
A securities depot is the basis for ETF savings plans. The pension depot has additional provider rules. Check whether your depot provider offers the subsidised product at all, otherwise you end up with two separate accounts and their own costs.
What to do now
- Build an emergency fund first, before you save over the long term.
- Check the subsidy requirements of the pension depot as soon as offers are available.
- Compare total costs in percent per year, including funds, depot and savings plan.
- Choose one route, set up a standing order and review it once a year.
Related guides
- Altersvorsorgedepot 2027: subsidy and bonus for young people
- Riester reform 2027: what changes for students and new graduates
- ETF savings plan for students: step by step
- Retirement provision for students: starting early with small amounts
Sources: Bundestag printed paper 21/4997, 25 March 2026; Bundestag printed paper 21/6726, 25 June 2026; Section 20 EStG, saver’s lump sum (German law, accessed October 2026)
Last updated: October 2026. This guide is general information, not individual advice.
