Germany Financial Glossary
Learn the definitions of key financial terms, tax acronyms, and mortgage jargon commonly used in Germany. Updated for 2026.
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Aktivrente (Active Pension)
TaxA 2026 German tax exemption allowing working retirees to earn up to €2,000/month (€24,000/year) completely free of income tax on active employment earnings.
View full definition →Altersvorsorgedepot
RetirementGermany's 2027 replacement for the Riester-Rente: a state-subsidized pension depot allowing 100% equity ETF investing without mandatory capital guarantee.
View full definition →Altersrückstellungen
RetirementAge reserves (Alterungsrückstellungen): savings built into PKV premiums specifically to subsidize rising health insurance costs in old age.
View full definition →F
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German financial terms for the Aktivrente and Altersvorsorgedepot era
Germany introduced the Aktivrente (€2,000/month tax-free for working retirees) in January 2026, the Frühstart-Rente (€10/month government pension for children) is launching, and the Altersvorsorgedepot replaces the failed Riester-Rente from January 2027. The KVdR 9/10 rule continues to determine whether your health insurance costs €380 or €900/month in retirement. These terms cover the 2026-2027 pension and insurance rules.
Aktivrente and Frühstart-Rente: the new pension tools
Working past 67? The Aktivrente exempts up to €24,000/year of employment income from income tax (§3 Nr. 21 EStG). Social contributions still apply, but the income tax saving alone is €3,000-€8,000/year depending on earnings. The Frühstart-Rente invests €10/month per child (ages 6-17) in equity funds, just €1,440 total that compounds to €30,000-€90,000 by retirement through 50+ years of growth.
Altersvorsorgedepot: Riester's successor from 2027
The old Riester-Rente forced providers into capital guarantees that destroyed returns. The Altersvorsorgedepot eliminates this requirement, allows 100% equity ETF investing, caps fees at 0.50%/year, and provides up to €540 base subsidy + €300 per child. Contributions up to €3,600/year are fully tax-deductible. Existing Riester contracts can transfer into the new format.
KVdR vs PKV: the retirement health insurance decision
The 9/10 rule (Neun-Zehntel-Regelung) requires 90% of the second half of your working life in GKV to access cheaper KVdR premiums. Failing means freiwillig versichert: premiums calculated on ALL income (pension, rental, dividends). The gap: €1,500-€3,600/year extra for life. PKV members need adequate Altersrückstellungen (age reserves) to prevent premiums exceeding €1,000/month after 70.