What the law says about the transfer

Riester contracts signed before 1 January 2027 continue unchanged and remain subsidised under the Riester rules. There is no deadline for a decision.

Continue, make contribution-free, switch to the new subsidy scheme within the contract (only if the provider offers it; irrevocable according to providers), or transfer the retirement capital into an Altersvorsorgedepot. All four are permitted.

The state subsidy is not granted for a Riester contract and an Altersvorsorgedepot at the same time.

The accumulated retirement capital can be transferred into an Altersvorsorgedepot from 1 January 2027. The transfer is subsidy-neutral; the new subsidy scheme applies afterwards.

The previous provider does not have to consent to the transfer. The request is filed with the new provider, which requests the balance.

For contracts younger than five years at the time of transfer, the previous provider may charge at most €150.

For contracts five years or older, the previous provider may not charge switching costs.

The new provider may charge at most €150 for accepting the transferred capital; acquisition and distribution costs on subsidised capital are not permitted. Standard accounts have an ongoing cost cap of 1 percent per year.

All allowances and tax benefits received so far are kept on transfer; the allowance account at the ZfA continues and the allowance number stays.

The transferred capital is not subsidised again in the year of the transfer. Ongoing contributions into the Altersvorsorgedepot are subsidised in the same year under the new rules.

Anyone entering the payout phase before 1 January 2027 stays in the Riester logic: at most a 30 percent lump sum, the rest as a lifelong annuity or drawdown plan with residual annuitisation. A transfer out of a contract already in payout is, according to available publications, not provided for.

Start at 65 at the earliest; choice between a drawdown plan until at least 85, a lifelong annuity or a combination; lump sum up to 30 percent possible. No contribution guarantee in the pure Altersvorsorgedepot; guarantee products with 80 or 100 percent are a separate category.

The Riester contract has a contribution guarantee at retirement, the Altersvorsorgedepot does not. With a short remaining term the ratio of guaranteed value to current balance on the statement is the relevant figure.

The Altersvorsorgedepot allows up to 100 percent equities without a guarantee; the subsidy is proportional to contributions.

Basic allowance €175 at 4 percent of previous year's gross income (max. €2,100 incl. allowances, base contribution €60); child allowance €300 per child (born 2008 or later, otherwise €185); career-starter bonus €200 under 25; special-expense deduction up to €2,100.

50 percent on the first €360 of contributions (€180) plus 25 percent on €360 to €1,800 (€360), up to €540 basic allowance; child allowance up to €300 per child entitled to child benefit; career-starter bonus €200 under 25; minimum contribution €120 per year; special-expense deduction up to €6,840 with a better-of test; the self-employed are eligible for the first time.

The Riester child allowance is a fixed sum from the base contribution upwards; the new child allowance is contribution-based up to €300 per child. With very small contributions and several children the old total is higher. Details on offsetting follow with the administrative rules.

Fund units are not transferred but sold; the cash value flows. For insurance contracts this is the transfer value, which can be below the cover capital because of acquisition costs already offset.

For contracts with a used housing subsidy account there is no confirmed rule on transfers; publications contradict each other. Riester building-society contracts in the savings phase without housing use fall under the general rules.

On cancellation with payout, allowances and tax benefits are reclaimed (harmful use). On transfer they are not.