The Riester-Rente is dead. Starting January 2027, its replacement, the Altersvorsorgedepot, finally lets Germans invest their pension subsidies in ETFs without the absurd capital guarantee that made Riester products expensive and low-returning.
Why Riester failed
The old Riester system required providers to guarantee 100% of contributions at retirement. This forced them into bonds and money-market instruments (because equities can lose value). Result: after fees, many Riester contracts delivered real returns near zero. Savers would have been better off in a plain savings account.
What the Altersvorsorgedepot changes
- NO capital guarantee requirement — providers can offer pure equity ETF products
- Maximum annual fee cap: 0.50% of assets (down from the 1.5%+ that Riester providers charged)
- State subsidy (Grundzulage): up to €540/year for a €1,800 annual contribution
- Child bonus: €300/year per child
- Full tax deductibility of contributions up to €3,600/year as Sonderausgaben
The subsidy math for a family
Stefan and Lisa have two children. Combined contribution: €3,600/year.
- Base subsidy: 2 × €540 = €1,080
- Child bonus: 2 × €300 = €600
- Total state support: €1,680/year
- Their own money: €3,600 - €1,680 = €1,920/year out of pocket
- Plus tax deduction on the full €3,600 at their marginal rate
Invested in a global equity ETF at 7% returns over 30 years, their €3,600/year accumulates to roughly €340,000.
