Altersvorsorgedepot - The €540 ETF Pension [2027]

From 1 January 2027, Germany will pay up to €540 a year into a private pension that you invest in ETFs. The product is called the Altersvorsorgedepot (retirement savings depot), and it replaces the Riester-Rente for new contracts. If you pay in €150 a month, the state adds another €45 a month on top. Parents get up to €300 extra per child per year.

When I first heard “540 Euro Rente” in the office kitchen, I assumed it was another Riester in a new jacket. I had looked at Riester years ago in Freiburg, saw the fees and the guarantee that forced most of the money into bonds, and walked away. The Altersvorsorgedepot is different in the one way that matters most to me: it lets you hold low-cost ETFs and still collect the state subsidy.

This guide covers how the €540 is calculated, who can open one, what you can invest in, how the payout works, and the part almost every German article skips: what happens to your Altersvorsorgedepot if you leave Germany.

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What Is the Altersvorsorgedepot?

The Altersvorsorgedepot is a certified securities account for retirement savings, created by the Altersvorsorgereformgesetz (pension reform act). The Bundestag passed the law in March 2026, the Bundesrat approved it on 8 May 2026, and banks, brokers and insurers may sell the new contracts from 1 January 2027.

It sits in the third pillar of the German pension system, next to the gesetzliche Rente (statutory pension) and the betriebliche Altersvorsorge (company pension). Its job is the same one Riester had: to close the gap the statutory pension leaves. The difference is how the money is invested.

Riester contracts had to guarantee at least the money you paid in. That guarantee pushed providers into bonds and expensive insurance wrappers, and many contracts barely grew. The Altersvorsorgedepot drops the guarantee requirement. You can put 100% of your money into ETFs and funds, which historically return far more over 30 or 40 years than bonds.

Not every ETF savings plan counts. Only contracts certified for the Altersvorsorgedepot receive the subsidy, so your normal Trade Republic or Scalable depot will not suddenly start collecting €540 a year.

How the €540 Subsidy Is Calculated

The state pays a Grundzulage (basic allowance) in two tiers. The first euros you save get the highest bonus, which is deliberate: the reform is designed to reward small and medium savers the most.

Below €120 a year (€10 a month), you get nothing. Above €1,800, you can keep paying in, but the extra money receives no Zulage.

Here is what that looks like at different savings levels:

The sweet spot for the subsidy ratio is €30 a month, where every euro becomes €1.50. The maximum absolute subsidy starts at €150 a month.

Child Bonus and Starter Bonus

Two extras make the Altersvorsorgedepot particularly strong for families and young workers.

The Kinderzulage (child allowance) pays €1 for every €1 you contribute, up to €300 per child per year. The child must be one you receive Kindergeld for, and only one parent can claim it, so decide in advance whose contract it goes into. For a family with two children, the state can add €1,140 a year to a €1,800 contribution.

The Berufseinsteigerbonus (career starter bonus) is a one-off €200 for anyone who opens a contract before turning 25. If you are a student or apprentice in Germany, opening early with the €10 minimum locks in the bonus.

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Tax Benefits on Top of the €540

Your contributions can also be claimed in your Steuererklärung (tax return) as Sonderausgaben (special expenses). You can deduct up to €1,800 of your own contributions plus the Zulage you are entitled to. The Finanzamt then runs a Günstigerprüfung (best-of check): it compares the Zulage with the tax saving and gives you whichever is higher. If the tax saving is bigger, you get the difference as a refund.

For example, at €1,800 contribution and €540 Zulage, €2,340 is deductible. At a marginal tax rate of around 33%, the tax saving is roughly €770, so you receive about €230 back on top of the €540. Lower earners usually get no extra refund, but for them the Zulage is already the better deal.

The Finanzamt only runs this check if you file a tax return and add the Anlage AV (pension contributions form). Tax apps such as Taxfix, Wundertax and SteuerGo guide you through it in English, so you do not leave the extra refund on the table. If you would rather hand it off, GetSorted prepares the return for you.

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Who Can Open an Altersvorsorgedepot?

Nationality does not matter. What matters is whether you pay into a German pension system. From 2027, you are directly eligible if you are:

• An employee paying into the gesetzliche Rentenversicherung (statutory pension insurance), including trainees and Midijob workers
• A Minijobber who has not opted out of pension contributions
• A Beamter (civil servant), judge or soldier
• New: self-employed, freelancers and business owners (Gewerbetreibende)
• New: members of a professional pension scheme (berufsständisches Versorgungswerk), such as doctors, lawyers and architects
• Members of the Künstlersozialkasse and parents in recognised child-raising periods

A spouse who is not eligible in their own right can still open a contract and receive a reduced subsidy, as long as they pay at least €120 a year. Minijobbers who opted out of pension insurance and people with no pension coverage at all are not eligible.

For freelancers this is a real change. Under Riester, most self-employed people were locked out unless they were compulsorily insured. From 2027, a freelance designer in Berlin gets the same €540 as an employee.

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Three Product Types: Which One Fits You?

Providers can offer three kinds of certified contracts.

1. Altersvorsorgedepot (free choice). You pick the funds yourself from the certified list. Allowed are ETFs and funds in risk classes 1 to 5 on the EU SRI scale (1 is lowest risk, 7 highest), and government bonds from EU states. A broad global equity ETF typically falls in class 4. Not allowed: single stocks, certificates, crypto, and very volatile funds in classes 6 and 7.

2. Standarddepot (standard product). A ready-made option for people who do not want to choose. It combines two preselected funds, one low-risk and one higher-risk, and gradually shifts toward lower risk as you approach retirement. It is fully digital, comes without advice, and its effective costs are capped by law at 1.0% a year. Every provider must offer one or refer you to a partner’s. A state-run standard product is planned, but no start date has been set.

3. Guarantee products. Contracts that guarantee 80% or 100% of your contributions plus Zulagen at the start of payout. These are aimed at very cautious savers and are usually sold by insurers and banks. The guarantee costs return, just like it did with Riester.

My take: if you have 20 or more years until retirement, the free-choice depot with one or two broad ETFs is hard to beat. If you know you will never look at it again, the Standarddepot from a cheap provider is fine. I would avoid the guarantee products unless you are close to retirement.

Which Providers Offer It?

Contracts start on 1 January 2027, and most providers have announced plans but not final price sheets. As of November 2026:

Banks, insurers, fund companies and Bausparkassen will also offer contracts. Prices on comparison sites are often guesses at this point. Wait for the official cost information sheet before signing, and compare the Effektivkosten (total effective costs per year), not just the depot fee. A difference of 0.8% a year can cost you tens of thousands of euros over 35 years.

If you already have a regular depot with Trade Republic, Scalable Capital or comdirect, opening the Altersvorsorgedepot with the same provider keeps everything in one app. You still need a separate, certified contract to receive the Zulage.

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What Could €150 a Month Grow To?

Here is a simplified example. A 30-year-old pays €150 a month (€1,800 a year) until age 65 and receives the full €540 Grundzulage every year. We assume 5.8% annual return after costs, which is in line with long-run returns of a global equity ETF but not guaranteed.

Without the Zulage, the same €150 a month would reach roughly €192,000 under the same assumptions. Keep in mind that the Altersvorsorgedepot payout is taxed as income in retirement, while a normal ETF depot only pays capital gains tax on the profit. Most people have a lower tax rate in retirement than while working, so the subsidy usually still comes out ahead, but the gap is smaller than the raw numbers suggest.

How the Payout Works

Payout starts between your 65th and 70th birthday. You can start earlier only if you already draw a statutory or civil-servant pension. You then choose between:

• Auszahlplan (payout plan): monthly payments that run until at least age 85. The plan is recalculated at least every three years, and whatever is left at the end is paid out.
• Leibrente (lifelong pension): you convert the balance into an annuity that pays until you die.

At the start of payout, you can take up to 30% as a lump sum. Very small pensions can be paid out in one go.

Payments from the subsidised part are fully taxed at your personal income tax rate (nachgelagerte Besteuerung, deferred taxation). Contributions above the €1,800 subsidised limit are taxed more lightly in retirement.

Can You Get the Money Out Early?

Not without a cost. Cashing out before retirement counts as förderschädliche Verwendung (harmful use). You must repay all Zulagen and tax benefits, and the gains are taxed.

There are two exceptions. You can use the savings to buy, build or energy-renovate your own home in the EU or EEA, or to pay off its mortgage, without repaying the subsidy, if your provider offers this. And if you die, your spouse or registered partner can take over the balance into their own Altersvorsorgedepot without losing the subsidy. Other heirs get the money minus the subsidies.

If you are planning to buy a home and want to see how much of your Altersvorsorgedepot could go toward it, Hypofriend compares German mortgage offers in English and shows what you can afford in a few minutes.

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What Happens If You Leave Germany?

This is the question that matters most for expats, and the rules follow the existing Riester logic.

Moving to another EU or EEA country: your contract stays in place and you generally keep the subsidies already paid. You usually stop receiving new Zulagen once you no longer pay into a German pension system or are no longer taxed in Germany. The money stays invested until payout age.

Moving outside the EU or EEA (for example to the UK, US, India or Pakistan): losing your unlimited tax liability in Germany is treated like harmful use. You must repay the Zulagen and tax benefits. You can ask for the repayment to be deferred until payout, in which case the contract continues without new subsidies, or repay it straight away.

Payout while living abroad: which country taxes your payout depends on the double taxation agreement between Germany and your new home country.

If there is a real chance you will move to a non-EU country before 65, the €540 a year is effectively a loan you may have to pay back. In that case, a normal ETF savings plan in a regular depot keeps your money flexible. If you expect to move often, an international broker like Interactive Brokers is easier to keep when you change countries than most German-only brokers. If you stay, a low-cost German broker such as Smartbroker+ works well for the unsubsidised part of your savings. Before you leave, talk to your provider and the Zentrale Zulagenstelle für Altersvermögen (ZfA, central allowance office) about your options.

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What About My Existing Riester Contract?

Existing Riester contracts keep their protection, so you do not have to cancel anything. You have three options:

1. Keep it and continue paying under the old Riester rules.
2. Stop paying (beitragsfrei stellen) and open a new Altersvorsorgedepot alongside it.
3. Transfer the Riester balance into an Altersvorsorgedepot. The notice period is three months to the end of a quarter, and the new provider does not have to accept the transfer.

Switching costs are capped. If your contract is younger than five years, the old provider can charge up to €150 and the new one up to €150. After five years, switching is free. Do not cancel a Riester contract outright, because that counts as harmful use and you lose the subsidies.

Is the Altersvorsorgedepot Worth It for Expats?

For most expats who plan to stay in Germany or the EU, yes. A guaranteed 30 to 50% bonus on your own money is hard to find anywhere else, and the ETF option finally makes the state subsidy usable for long-term investors.

It makes the most sense if you:

• Plan to retire in Germany or another EU country
• Have children who receive Kindergeld
• Are self-employed and had no access to Riester before
• Are under 25 and can collect the €200 starter bonus
• Can leave at least €30 a month untouched for decades

Think twice if you:

• Expect to move to a non-EU country before 65
• Need access to your savings in the next 10 to 20 years
• Already pay a high tax rate and expect a high income in retirement

My own plan: I will pay €150 a month into a low-cost free-choice depot with a global ETF to collect the full €540, and keep everything above that in my regular ETF savings plan with Trade Republic or Scalable Capital, where I can reach it if life changes.

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Jibran Shahid

Hi, I am Jibran, your fellow expat living in Germany since 2014. With over 12 years of personal and professional experience navigating life as a foreigner, I am dedicated to providing well-researched and practical guides to help you settle and thrive in Germany. Whether you are looking for advice on bureaucracy, accommodation, jobs, or cultural integration, I have got you covered with tips and insights tailored specifically for expats. Join me on my journey as I share valuable information to make your life in Germany easier and more enjoyable.